Alphabet Inc. (GOOGL): 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 Alphabet Inc. (NASDAQ:GOOGL) 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).

Alphabet Inc. (NASDAQ:GOOGL)

Number of Hedge Fund Holders as of Q4: 234

TCI Fund Management’s Equity Stake: $3.14 Billion

Upside Potential as of May 6: 21.29%

Alphabet Inc. (NASDAQ:GOOGL), a parent company of Google, remains one of the most dominant forces in the global technology sector. Among Chris Hohn’s stock picks, Alphabet stands out with a notable upside potential of 21.29%, positioning it as one of the top stocks with significant growth prospects. In the first quarter of 2025, the company delivered a strong financial performance, reporting earnings per share of $2.81 on revenue of $90.2 billion. Both figures exceeded analyst expectations, which called for EPS of $2.01 and revenue of $89.1 billion. This performance represents a significant year-over-year increase from Q1 2024, when Alphabet posted EPS of $1.89 on revenue of $80.5 billion.

The company’s advertising business remained the backbone of its earnings, bringing in $66.8 billion, slightly ahead of consensus estimates. Meanwhile, its cloud segment posted $12.2 billion in revenue, a sharp improvement from $9.5 billion a year earlier, although it narrowly missed forecasts. Alphabet Inc. (NASDAQ:GOOGL)’s focus on AI infrastructure and tools continues to position it well for long-term growth, with strategic investments enhancing both its consumer and enterprise offerings.

Institutional confidence in Alphabet Inc. (NASDAQ:GOOGL) is rising. By the end of Q4 2024, hedge fund ownership in the company increased substantially. A total of 234 hedge funds tracked by Insider Monkey held stakes in the company, up from 202 in the prior quarter, with aggregate holdings valued at $39.59 billion. This surge underscores a strong endorsement from professional investors.

However, Alphabet’s market dominance has come under legal scrutiny. In April 2025, a federal judge ruled that Google holds an illegal monopoly in online advertising, raising the possibility of enforced divestitures. This ruling follows an earlier antitrust decision against its search and ad units. While these legal risks remain material, Alphabet Inc. (NASDAQ:GOOGL)’s diversified revenue base and continued innovation in AI and cloud technologies suggest the company is well-equipped to weather regulatory challenges and deliver sustained growth.

Oakmark Equity and Income Fund stated the following regarding Alphabet Inc. (NASDAQ:GOOGL) in its Q4 2024 investor letter:

“Alphabet Inc. (NASDAQ:GOOGL) was the top contributor during the quarter. Despite ongoing litigation with the Department of Justice in its antitrust case, the U.S.-headquartered interactive media and services company’s stock price rose after posting solid third-quarter earnings. In the Search division, the company generated low-teens year-over-year revenue growth and management highlighted that they’re seeing strong user engagement with their new AI Overviews feature. The biggest upside surprise came from the Cloud division, where revenue growth accelerated to 35% and margins reached a record of 17%. This performance was driven by client demand for AI Infrastructure and Generative AI Solutions as well as core Google Cloud Platform (GCP) products. We continue to believe Alphabet is a collection of great businesses that can unlock further value over the long term through its world-class AI capabilities.”

Overall, GOOGL ranks 2nd on our list of Billionaire Chris Hohn’s stock picks with huge upside potential. While we acknowledge the potential of GOOGL 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 GOOGL 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.