Al Gore - Generation Investment Management Llp Portfolio Q2'2025: Top Holdings & Recent Changes
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Al Gore and his team at Generation Investment Management continue to set the standard for sustainable, long-term investing. Their Q2 2025 portfolio—valued at $15.7 billion—reflects a disciplined approach to both growth and risk management, with notable reductions in some of their largest positions and strategic additions in healthcare and technology. This quarter’s moves signal a nuanced response to market volatility, as Generation trims exposure to high-flying tech names while doubling down on businesses with durable competitive advantages and clear sustainability profiles.
Portfolio Overview: Concentration with Conviction
Portfolio Highlights (Q2 2025): - Market Value: $15.7 billion - Top 10 Holdings: 63.0% of portfolio - Portfolio Size: 37 positions (down 1 from last quarter) - Average Holding Period: 16 quarters (4 years) - Turnover: 18.9%
Generation’s portfolio remains concentrated, with the top 10 positions accounting for nearly two-thirds of assets. This reflects a high-conviction, research-intensive strategy—typical of long-term value investors who prioritize understanding over diversification. The average holding period of four years underscores a patient approach, while the moderate turnover suggests a willingness to adjust when valuations or fundamentals shift meaningfully.
The quarter saw a net reduction in portfolio size, as Generation exited one position entirely. This pruning, combined with selective additions, indicates a focus on quality and a readiness to let winners run while cutting exposure to names that no longer meet their strict criteria for sustainable growth.
Holdings Overview: Tech Leaders, Healthcare Innovators, and Selective Trims
Generation’s portfolio is anchored by a mix of technology leaders, healthcare innovators, and financial services stalwarts. The largest position, Microsoft, remains a core holding at 15.9% of the portfolio, though Generation reduced its stake by 3.04% this quarter—a notable move given Microsoft’s strong performance and dominant position in cloud computing. Similarly, Charles Schwab 8.1% and MercadoLibre 7.6% saw reductions of 3.09% and 13.27%, respectively, suggesting some profit-taking after strong runs.
In contrast, Generation made significant additions to Danaher (up 56.24% to 6.2% of the portfolio), Trimble (up 19.14% to 4.4%), and Agilent Technologies (up 15.90% to 4.3%). These moves highlight a pivot toward healthcare and precision technology—sectors with strong tailwinds in innovation and sustainability. STERIS 4.8% and Equifax 4.2% saw modest reductions, while Alphabet 4.1% was trimmed by 5.02%. Further down the list, Analog Devices 3.3% was also reduced by 4.54%.
This quarter’s activity paints a picture of a manager willing to take profits in outperforming names while reinvesting in businesses with visible growth runways and alignment with Generation’s sustainability mandate. The portfolio remains global in scope, with meaningful exposure to both U.S. and international equities.
What the Portfolio Reveals About Current Strategy
- Quality Over Momentum: Generation is willing to reduce even its largest winners when valuations become stretched, demonstrating a focus on absolute rather than relative returns.
- Sector Rotation: The fund is increasing exposure to healthcare and precision technology, sectors less sensitive to economic cycles and more aligned with long-term demographic and innovation trends.
- Sustainability Lens: The additions to Danaher, Trimble, and Agilent reflect a continued emphasis on companies with strong environmental, social, and governance (ESG) profiles—a hallmark of Generation’s strategy.
- Risk Management: The reduction in portfolio size and selective trimming of top holdings suggest a disciplined approach to risk, even as the overall portfolio remains concentrated.
- Global Diversification: While U.S. equities dominate, the presence of names like MercadoLibre (Latin America’s leading e-commerce platform) indicates a willingness to seek growth wherever it is most sustainable.
Portfolio Concentration Analysis
| Position | Value | % of Portfolio | Recent Change |
|---|---|---|---|
| Microsoft Corp | $2,506.2M | 15.9% | Reduce 3.04% |
| Charles Schwab Corp | $1,266.9M | 8.1% | Reduce 3.09% |
| MercadoLibre Inc | $1,202.7M | 7.6% | Reduce 13.27% |
| Danaher Corporation | $980.9M | 6.2% | Add 56.24% |
| STERIS PLC | $761.7M | 4.8% | Reduce 5.48% |
| Trimble Inc | $685.3M | 4.4% | Add 19.14% |
| Agilent Technologies | $681.6M | 4.3% | Add 15.90% |
| Equifax Inc | $667.4M | 4.2% | Reduce 8.15% |
| Alphabet Inc | $649.8M | 4.1% | Reduce 5.02% |
The top 10 holdings account for 63% of the portfolio, underscoring Generation’s high-conviction approach. Microsoft remains the anchor, but the fund is not afraid to trim even its largest position when warranted. The additions to Danaher, Trimble, and Agilent are particularly noteworthy, as they represent meaningful new bets on healthcare and technology innovation. The overall mix suggests a balance between growth, quality, and sustainability—core tenets of Generation’s investment philosophy.
Investment Lessons from Al Gore and Generation Investment Management
- Concentration with Conviction: Generation’s portfolio demonstrates that concentrated positions in high-quality, sustainable businesses can drive outperformance over time.
- Disciplined Profit-Taking: Even the best companies can become overvalued; Generation’s willingness to trim winners is a lesson in risk management.
- Sustainability as a Moat: Companies with strong ESG profiles are not just ethically sound—they often possess durable competitive advantages and lower regulatory risk.
- Patient Capital: An average holding period of four years reflects a focus on long-term value creation, not short-term market noise.
- Adaptability: Generation’s sector rotation into healthcare and precision tech shows an ability to pivot when new opportunities arise, without abandoning core principles.
Looking Ahead: What Comes Next?
With $15.7 billion in assets and a moderate cash position, Generation has ample dry powder to take advantage of market dislocations. The fund’s recent moves suggest a continued focus on healthcare, technology, and sustainability—areas where innovation and regulatory tailwinds are strongest. Investors should watch for further additions in these sectors, as well as potential new international opportunities. Generation’s disciplined approach to valuation and risk suggests that any new positions will be thoroughly vetted for both growth potential and alignment with their sustainability mandate.
FAQ about Al Gore’s Generation Investment Management Portfolio
Q: Why did Generation reduce its Microsoft position?
A: While Microsoft remains Generation’s largest holding, the fund trimmed its stake by 3.04%—likely a response to valuation concerns after a strong run in the stock. This reflects Generation’s disciplined approach to risk management and absolute returns.
Q: What sectors is Generation favoring now?
A: Generation is increasing exposure to healthcare (Danaher, Agilent) and precision technology (Trimble), sectors with strong innovation and sustainability profiles. The fund continues to hold significant positions in technology and financial services but is being selective amid elevated valuations.
Q: How does Generation incorporate sustainability into its stock selection?
A: Sustainability is a core pillar of Generation’s strategy. The fund seeks companies with strong ESG practices, believing these firms are better positioned for long-term growth and less exposed to regulatory and reputational risks.
Q: How can I track Generation’s portfolio changes?
A: Generation’s portfolio is disclosed quarterly via 13F filings, which are available with a 45-day lag. Platforms like ValueSense provide timely analysis and visualization of these filings, making it easier for investors to follow superinvestor moves.
Q: What is Generation’s approach to portfolio concentration?
A: Generation runs a concentrated portfolio, with the top 10 holdings accounting for 63% of assets. This reflects a high-conviction, research-intensive strategy focused on quality and sustainability.
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