We break down the stocks Stockbridge bought, sold, and held in Q1 2025, including their holdings at the end of the quarter. All data sourced from Stockbridge's 13F filed on May 15, 2025.
Who are Stockbridge and Berkshire Partners?
Stockbridge is the public equity investment arm of Berkshire Partners, a Boston-based private equity firm established in 1984. The firm focuses on building long-term concentrated positions in high-quality growth companies with sustainable competitive advantages. Stockbridge leverages Berkshire's extensive private equity experience to identify public companies with exceptional management teams and compelling business models.
Berkshirepartners.com/stockbridge
Wikipedia
Interview with Stockbridge's Rob Small on Transdigm
Portfolio Changes in Q1 2025
New Positions
Stockbridge established new holdings in ServiceNow, Inc. (NOW) with 201,140 shares valued at $160.1 million and Taiwan Semiconductor Manufacturing Company Limited (TSM) with 941,661 shares valued at $156.3 million.
Bought
The firm significantly increased its stake in Veeva Systems Inc. (VEEV) by 752,692 shares (+137% return), while also adding to positions in Microsoft Corporation (MSFT) (+214,190 shares), Waste Connections, Inc. (WCN) (+154,845 shares), Thermo Fisher Scientific Inc. (TMO) (+80,726 shares), and Deere & Company (DE) (+1,111 shares).
Sold
Stockbridge reduced its holdings in Guidewire Software, Inc. (GWRE) by 927,789 shares, Amazon.com, Inc. (AMZN) by 449,297 shares, Vulcan Materials Company (VMC) by 350,987 shares, TransDigm Group Incorporated (TDG) by 90,034 shares, and Hilton Worldwide Holdings Inc. (HLT) by 52,500 shares, while completely liquidating positions in The New York Times Company (NYT) and Liberty Broadband Corporation (LBRDK).
New Investments in Q1 2025
| Ticker | Company | Weight | Change | Value |
|---|---|---|---|---|
| NOW | ServiceNow, Inc. | 3.5% | NEW | $160,135,600 |
| TSM | Taiwan Semiconductor Manufacturing Company Limited | 3.5% | NEW | $156,315,726 |
ServiceNow, Inc. NOW
Stockbridge bought 201,140 shares of ServiceNow, Inc. in Q1 2025. ServiceNow, Inc. has delivered a 24.92% 1-year return, outperforming the S&P 500's 7.55%, despite a 12.06% year-to-date decline through May 2025. The company posted 20% YoY subscription revenue growth in Q1 2025 and raised full-year guidance, driven by AI product adoption and 72 large deals including nine worth over $5M in new annual contracts. Recent momentum suggests recovery potential after its Q1 earnings beat fueled a 14.79% single-day stock surge.
- Subscription revenue grew 20% YoY to $3.005B in Q1 2025 (constant currency).
- Operating margin reached 31% in Q1, 100 basis points above guidance.
- Stock gained 24.92% over 12 months vs. S&P 500's 7.55%, despite -12.06% YTD return.
Taiwan Semiconductor Manufacturing Company TSM
Stockbridge bought 941,661 shares of Taiwan Semiconductor Manufacturing Company Limited in Q1 2025. Taiwan Semiconductor Manufacturing Company Limited (TSM) has demonstrated strong financial growth over the past year, with 2024 revenue surging 33.89% to 2.89 trillion TWD and earnings rising 39.92% to 1.17 trillion TWD. While Q1 2025 saw a 3% sequential revenue decline, the company maintains a dominant 60% market share in global chip foundries and is positioned to benefit from the AI boom, with AI-related server revenue projected to double in 2025. The stock has gained 54.9% over the past year (52-week range: $125.78–$226.40) and trades at a P/E ratio of 23.47.
- 2024 revenue grew 33.89% year-over-year to 2.89 trillion TWD with earnings up 39.92%.
- Analysts project 17.3% upside potential with average price target of $219.43 (high: $251.00).
- AI-related server/processor revenue expected to double in 2025, driving 10.70% short-term stock growth forecast.
Holdings at the end of Q1 2025
| Ticker | Company | Weight | Change | Value |
|---|---|---|---|---|
| TDG | TransDigm Group Incorporated | 17.7% | Sold | $799,888,826 |
| AMZN | Amazon.com, Inc. | 12.1% | Sold | $545,366,782 |
| DE | Deere & Company | 9.2% | Bought | $414,631,769 |
| WCN | Waste Connections, Inc. | 9.2% | Bought | $414,448,684 |
| MSFT | Microsoft Corporation | 8.8% | Bought | $398,258,759 |
| GWRE | Guidewire Software, Inc. | 7.3% | Sold | $328,080,100 |
| HLT | Hilton Worldwide Holdings Inc. | 7.3% | Sold | $327,760,517 |
| VMC | Vulcan Materials Company | 7.2% | Sold | $325,568,984 |
| VEEV | Veeva Systems Inc. | 7.2% | Bought | $325,563,377 |
| TMO | Thermo Fisher Scientific Inc. | 7.1% | Bought | $322,100,958 |
| NOW | ServiceNow, Inc. | 3.5% | New | $160,135,600 |
| TSM | Taiwan Semiconductor Manufacturing Company Limited | 3.5% | New | $156,315,726 |
| NYT | The New York Times Company | 0.0% | Sold Out | $0 |
| LBRDK | Liberty Broadband Corporation | 0.0% | Sold Out | $0 |
Disclaimer: All posts on Scout are for informational purposes only. They are NOT a recommendation to buy or sell the securities discussed. Please do your own research and due diligence before investing your money.
