Canadian Pacific Kansas City Limited (CP): Among Billionaire Chris Hohn's Stock Picks with Huge Upside Potential

We recently published a list of Billionaire Chris Hohn’s 8 Stock Picks with Huge Upside Potential. In this article, we are going to take a look at where Canadian Pacific Kansas City Limited (NYSE:CP) stands against other Billionaire Chris Hohn’s stock picks with huge upside potential.

The Children’s Investment Fund Management, also known as TCI Fund Management, is a British hedge fund firm headquartered in London and founded in 2003 by Sir Christopher Anthony Hohn. Hohn, a British billionaire and Harvard MBA graduate (Baker Scholar), also serves as the fund’s portfolio manager. TCI is distinguished by its value-oriented, fundamental investment philosophy and its focus on long-term, high-conviction positions in globally competitive businesses. The fund employs a private equity-style approach to public market investing, relying on deep fundamental research, constructive engagement with company management, and a willingness to use shareholder activism when necessary to drive performance. Known for its concentrated portfolio structure, the TCI Master Fund maximizes alpha by targeting high-quality companies with sustainable competitive advantages and predictable free cash flow.

TCI’s investment strategy includes opportunistic ventures into corporate transformations and special situations. In line with its activist reputation, the firm is prepared to exert influence on company direction and governance when it deems necessary to unlock shareholder value. This assertive approach has helped cement TCI’s reputation as one of the most successful and influential hedge funds in the world.

A significant aspect of TCI’s operations is its real estate lending business, which was launched in 2014 under the TCI Real Estate Partners Lending Funds. These funds invest alongside The Children’s Investment Fund Foundation (CIFF), the philanthropic arm initially supported by the fund’s profits. The lending strategy centers on first mortgage and senior secured lending for high-quality assets, with a particular focus on prime locations in major North American and European cities. This real estate arm reflects TCI’s broader investment philosophy, seeking security, quality, and long-term value.

As of Q4 2024, TCI managed $42.4 billion in securities across just nine core stock holdings, reflecting its highly concentrated and conviction-driven investment approach. The firm’s blend of fundamental analysis, disciplined value investing, and strategic activism continues to position it as a powerful force in global capital markets. Through its unique alignment of investment and philanthropic missions, TCI also exemplifies how hedge funds can blend financial performance with broader societal impact.

Our Methodology

For this article, we searched through TCI Fund Management’s Q4 2024 13F filings to identify billionaire Chris Hohn’s stock picks with the highest upside potential. We compiled the equities with upside potential higher than 8% at the time of writing this article and analyzed why they stood out as sound potential investments. Finally, we ranked the stocks based on the ascending order of their upside potential. To assist readers with more context, we mentioned the hedge fund sentiment around each stock using data from 1,009 hedge funds tracked by Insider Monkey in the fourth quarter of 2024.

Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 363.5% since May 2014, beating its benchmark by 208 percentage points (see more details here).

Canadian Pacific Kansas City Limited (NYSE:CP)

Number of Hedge Fund Holders as of Q4: 74

TCI Fund Management’s Equity Stake: $3.97 Billion 

Upside Potential as of May 6: 25.44%

Canadian Pacific Kansas City Limited (NYSE:CP), based in Calgary, has emerged as a transformative force in North American rail transportation following its 2023 acquisition of Kansas City Southern. The merger created the continent’s first single-line railway connecting Canada, the United States, and Mexico, offering customers a fully integrated logistics corridor across the three largest North American economies. Operating over 20,000 miles of rail with a workforce of approximately 20,000 employees, CP delivers freight transport, logistics, and supply chain solutions.

In the first quarter of 2025, Canadian Pacific Kansas City Limited (NYSE:CP) reported an 8% year-over-year increase in revenue to $3.8 billion. Operational efficiency also improved, with the operating ratio falling by 150 basis points to 62.5%. Safety performance reached new highs, with record improvements in both train accident frequency and personal injury rates. Reflecting its financial strength and shareholder-friendly capital strategy, the company raised its quarterly dividend by 20%.

Investor confidence continues to build. Chris Hohn’s TCI Fund Management held just under 55 million shares at the close of Q4 2024, underscoring long-term conviction in CP’s growth trajectory. Hedge fund interest followed suit, with 74 firms holding positions in the company, up from 52 in the prior quarter.

CP’s unique tri-national network is unlocking cross-border trade opportunities, particularly between Canada and Mexico. With more than $100 million in new revenue streams already realized, Canadian Pacific Kansas City Limited (NYSE:CP) is well-positioned to benefit from shifting trade dynamics, nearshoring trends, and growing demand for resilient supply chains.

With an upside potential of 25.44%, Canadian Pacific Kansas City Limited (NYSE:CP) is one of billionaire Chris Hohn’s stock picks with huge upside potential. Its strategic geographic reach, improving fundamentals, and growing institutional interest make it a compelling opportunity in the North American industrials sector.

Overall, CP ranks 1st on our list of Billionaire Chris Hohn’s stock picks with huge upside potential. While we acknowledge the potential of CP as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than CP but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

Disclosure: None. This article is originally published at Insider Monkey.