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Chris Hohn

Strategic Concepts & Mechanics

Identity & CultureDream Replaces Mission Statement
Cornerstone MoveTalent Factory as Acquisition Currency
Capital StrategyBonus Pool Tied to EVA, Not Revenue
Cornerstone MoveBuy Beloved Brands Run by Nobody
Signature MoveOwners Recruit, Not HR Drones
Signature MoveBottom 10% Shaved Every Year Forever
Risk DoctrineType IV Leader Purge Despite Results
Cornerstone MoveExit Banking, Enter Boring Forever
Signature MoveFire the Rebellious on Day One
Signature MoveOpen Floor, No Offices for Anyone
Strategic PatternHoshin Kanri Goal Cascade to Factory Floor
Cornerstone MoveLeak the Offer to Shame the Board
Signature MovePeople Chess Not Performance Reviews
Decision FrameworkFive Whys to Kill Surface Excuses
Operating PrincipleComfort-Zone Rotation as Growth Engine
Operating PrincipleStock Price Monitoring Discipline
Capital StrategyFee Structure as Values Expression
Signature MoveTwo-Year Minimum Hold Rule
Risk DoctrineManagement Personal Stress Assessment
Signature MoveInformation Sequencing Discipline
Decision FrameworkBridge as Investment Training
Identity & CultureInner Scorecard Over Outer Recognition
Decision FrameworkBehavioral Circuit Breakers
Signature MoveNetwork Building Through Giving First
Signature MoveHero Modeling as Learning Method
Signature MoveEnvironmental Design Over Willpower
Operating PrincipleGeographic Arbitrage for Mental Clarity
Strategic PatternEcosystem Win-Win Analysis

Primary Evidence

"The first large bet was made in conjunction with TCI, a London-based asset manager led by Chris Hohn and known for a number of activist incursions, namely ABN Amro Bank and the Deutsche Borse. 3G and TCI both acquired a large stake in CSX, an American railroad company, and pressed for aggressive changes in the company’s management. They were partially backed by Behring’s experience in ALL, Brazil’s largest railroad operator. After CSX, 3G raised a new fund enabling it to announce the take-private of Burger King in 2010. The fast-food chain was then held by private equity funds run by the Texas Pacific Group, Bain Capital, and Goldman Sachs, who’d purchased the company from Diageo in 2002. The group was having trouble running it, especially after the 2008 recession. The buyout valued BK at $3.3 billion (plus $700 million in debts), or nine times earnings. The disbursement was levered roughly one-to-one, which added around $1.7 billion of takeover debt on top of the existing $700 million. Bernardo Hees,"

Source:The 3g Way

"But the problem in a place like New York or London is that there are always so many people who are doing better than you. My office didn’t have gleaming floor-to-ceiling windows or panoramic views of the Manhattan skyline. I couldn’t match the elegance of Chris Hohn’s offices in Mayfair, London’s hedge fund epicenter. My beautiful home on one of the Upper West Side’s loveliest streets lacked Bill Ackman’s leafy views of Central Park."

Source:The Education of a Value Investor

Appears In Volumes