Sir Chris Hohn: Billionaire Hedge Fund Manager and Philanthropist [REPLAY]

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Mar 24, 2022

Billionaire hedge fund manager and philanthropist, Sir Chris Hohn, discusses his journey from immigrant roots to Harvard Business School, his charity work, and his 'say on climate' initiative targeting corporations lacking climate transition plans. He emphasizes the impact of climate change on poverty, child destitution, and the planet, pushing for corporate accountability and emissions disclosure.

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ANECDOTE

Chris Hohn's Upbringing Impact

Chris Hohn grew up as a son of Jamaican immigrants in a small town and studied at Harvard Business School.
An immigrant background gave him an outsider mindset that fueled his unconstrained thinking in investing.

INSIGHT

Public vs Private Market Quality

Public markets offer superior quality businesses compared to private equity.
Private equity often buys inferior businesses as the best are rarely sold to it.

ADVICE

Say on Climate Initiative

Companies should disclose emissions, have a plan to manage them, and subject these to annual shareholder votes.
This Say on Climate initiative increases corporate climate accountability and transparency.

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To celebrate our two year anniversary, we're resharing some of the most popular episodes of 2021. In this episode, Simon spoke to one of the world's most successful hedge fund managers, Sir Chris Hohn. He discusses his career, charity and his climate initiative (originally released in March 2021).

In this episode we have the rare opportunity to talk to Sir Chris Hohn, founder of TCI, one of the world’s most successful hedge funds and benefactor of the $6 billion children’s charity (CIFF) and now agitator against corporations who are failing to properly address their climate change transition plans.

The conversation starts with an insight into Chris’s upbringing, the sharpened appetite he believes accompanied being a child of immigrants, his journey from school to Harvard Business School and then to the world of investing, first in private equity and then to public equity markets.

He discusses key mentors as he was learning the investment business, his early experience investing before launching The Children’s Investment Fund and its evolving investment approach. Chris talks of the work undertaken at his charity (CIFF) which highlighted to him the impact climate change was having on poverty, child destitution and destruction of the planet.

This evidence has driven Chris to the creation of “Say on Climate” given that companies are responsible for 35% of global emissions, yet typically lack climate transition plans. Chris identifies the corporate behaviours that need addressing most urgently, what corporations must do the effect proper change, and the potential consequences of inaction. He describes the Say on Climate AGM resolution which requires annual disclosure of emissions, the plan to manage them, and how they will be judged going forward.

Chris talks about the dangers of passive investing with regard to this issue, the global variations in response, and the environmental downsides of bitcoin euphoria.

Finally, he talks about the examples set by Bill Gates and Warren Buffett, lessons for those early in their careers, and sound advice involving following your passion and thinking about who you want to become.