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Financial Times
Chris Hohn’s hedge fund slashes $8bn Microsoft stake in warning over AI disruption
Chris Hohn’s TCI hedge fund has reduced its Microsoft investment from $8 billion to just 1%, largely due to concerns over AI disrupting its Office software franchise and Azure cloud services. This marks a significant change for the fund, which held a major stake in Microsoft for nearly a decade. Hohn highlights the uncertainty AI poses for Microsoft’s competitive position moving forward, reflecting a broader shift in investor sentiment within the tech sector as the hype around AI continues to escalate.
MonitorConfidence: HighShort term horizon
Published 8 May 2026, 14:40 UTC2 min read
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Summary
TL;DR
- TCI lowers Microsoft stake from 10% to 1% of its portfolio.
- Concerns focus on AI disrupting Microsoft’s productivity and cloud offerings.
- Hohn's hedge fund increased its Alphabet investment from 3% to 5%.
- Microsoft’s stock down 14% in 2026 amid AI commercialization worries.
- TCI was the world's most profitable hedge fund last year.
Interesting facts
- Hohn's investment style is unusual in concentrating on a small number of companies.
- TCI has generated significant profits, outperforming larger rivals in the hedge fund space.
- The fund typically holds stocks for longer periods compared to other hedge funds.