In 2025, while most folks were busy calculating how many extra shifts it would take to cover rent, British hedge fund TCI Fund Management quietly delivered a record-shattering $18.9 billion in gains for its investors—the largest single-year haul ever for a hedge fund.
This eye-watering sum, confirmed by the Edmond de Rothschild Group’s annual survey of top funds, came courtesy of a 27% return that handily outpaced the S&P 500’s more modest 16.4%. TCI, managing $77 billion in assets, didn’t chase the AI hype train.
Instead, manager Chris Hohn loaded up on aerospace heavyweights like GE Aerospace, Safran SA, and Airbus—stocks that soared amid rising global military spending and aviation demand. Who knew jet engines could outperform chatbots?
The impact lands differently depending on which side of the wallet you’re viewing from. For TCI’s well-heeled clients, it’s champagne wishes and private-jet dreams realized in one tidy calendar year. For the broader economy, it’s a stark reminder of the K-shaped recovery: the wealthy soar higher while everyone else clings to the wing during turbulence.
Economists note that top earners fuel much of the spending that keeps things humming, yet lower- and middle-income households face faster-rising costs on essentials like rent, groceries, electricity, and gas. One expert quipped that the rich are basically holding the economy aloft—literally, in TCI’s case—while others wonder if their next paycheck will clear before the grocery bill doubles again.
The details are almost comically straightforward in their success. TCI concentrated bets on a handful of names, with GE Aerospace alone posting massive gains after its business split and aerospace rebound. Safran and Airbus rode similar tailwinds from defense budgets and travel recovery. No fancy algorithms or meme-stock gambles—just old-school stock-picking that happened to time the aviation boom perfectly.
Meanwhile, the hedge fund world collectively minted profits at record levels, but TCI’s performance stands alone as the champion. It even topped previous legends like Citadel’s 2022 haul and John Paulson’s famous subprime bet from 2007.
In an era where everyone obsesses over tech unicorns, a British fund betting big on literal engines feels like the financial equivalent of choosing a reliable sedan over a flashy sports car—and then watching it lap the track.
The contrast couldn’t be sharper. While some portfolios ballooned on silicon dreams, TCI proved that sometimes the surest path to riches is betting on things that actually fly. Investors everywhere are now asking the same question: should they switch from AI to aerospace? Or just hope the next rally includes a seat in coach?
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