We break down the stocks Stockbridge bought, sold, and held in Q2 2024, including their holdings at the end of the quarter. All data sourced from Stockbridge's 13F filed on August 14, 2024.
Who is Stockbridge?
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 Q2 2024
New positions
Stockbridge initiated two significant new positions, establishing a $206 million stake in Hilton (HLT) with 943,806 shares and a $128 million position in Deere (DE) with 343,363 shares.
Bought
The firm added to existing holdings in Guidewire Software (GWRE) by increasing their position by 396,548 shares and Lamb Weston Holdings (LW) by 217,461 shares.
Sold
Stockbridge completely exited positions in Uber (UBER) and United Rentals (URI), liquidating $124 million and $73 million stakes respectively, while trimming multiple existing holdings including significant reductions in New York Times (NYT) by 985,800 shares, Waste Connections (WCN) by 307,631 shares, Vulcan Materials (VMC) by 290,552 shares, and smaller trims to positions in Thermo Fisher (TMO), TransDigm (TDG), Amazon (AMZN), Charter Communications (CHTR), and Microsoft (MSFT).
New Investments in Q2 2024
| Ticker | Company | Weight | Change | Value |
|---|---|---|---|---|
| HLT | Hilton | 61.6% | NEW | $205.94M |
| DE | Deere | 38.4% | NEW | $128.29M |
Hilton HLT
Stockbridge bought $205.94M of Hilton in Q2 2024. Hilton Worldwide Holdings (HLT) demonstrated resilience in Q1 2025 with adjusted EPS rising 12.4% YoY to $1.72, beating estimates by 6.2%, despite revenue slightly missing expectations at $2.7 billion. System-wide RevPAR grew 2.5% driven by occupancy and rate improvements, while management/franchise fees increased 5.1%, supported by a 20% YoY expansion in new hotel openings (186 properties). The company repurchased 3.7 million shares at an average price of $242.92, reflecting confidence in long-term value, with analysts maintaining a "Buy" rating and a $246.12 average price target.
- Q1 2025 adjusted EPS of $1.72 (+12.4% YoY) beat estimates by 6.2%.
- System-wide RevPAR increased 2.5% with management/franchise fee growth of 5.1%.
- Repurchased 3.7M shares ($900M+ value) at $242.92 average price in Q1.
Deere DE
Stockbridge bought $128.29M of Deere in Q2 2024. Deere & Co. reported a 50% decline in Q1 2025 net income to $869M ($3.19/share) despite beating analyst estimates, with revenue falling 30% YOY to $8.51B. While maintaining full-year guidance of $5.0-5.5B net income, the company faces headwinds from 37-38% sales declines in key segments (Production & Precision Agriculture, Construction & Forestry). Recent focus on inventory optimization through its Smart Industrial Operating Model shows strategic adaptation to weakened farm equipment demand and construction sector challenges.
- EPS fell 49% YOY from $6.23 (Q1 2024) to $3.19 (Q1 2025).
- Q1 2025 revenue declined 30% to $8.51B, with Construction & Forestry segment sales dropping 38%.
- Maintained full-year 2025 net income guidance of $5.0-5.5B despite forecasting 30% decline in U.S. Large Ag markets.
Holdings at the end of Q2 2024
| Ticker | Company | Weight | Change | Value |
|---|---|---|---|---|
| TDG | TransDigm | 18.7% | Trimmed (-8%) | $902.42M |
| GWRE | Guidewire Software | 11.0% | Added (+11%) | $531.66M |
| AMZN | Amazon | 10.3% | Trimmed (-1%) | $497.87M |
| MSFT | Microsoft | 9.2% | Trimmed (-1%) | $445.02M |
| NYT | New York Times | 7.5% | Trimmed (-12%) | $363.1M |
| VMC | Vulcan Materials | 7.4% | Trimmed (-17%) | $355.91M |
| WCN | Waste Connections | 7.3% | Trimmed (-13%) | $355.34M |
| TMO | Thermo Fisher | 7.2% | Trimmed (-10%) | $349.73M |
| LW | Lamb Weston Holdings | 6.9% | Added (+6%) | $335.09M |
| LBRDK | Liberty Broadband | 4.3% | $207.65M | |
| HLT | Hilton | 4.3% | NEW | $205.94M |
| CHTR | Charter Communications | 3.3% | Trimmed (-4%) | $158.63M |
| DE | Deere | 2.7% | NEW | $128.29M |
| UBER | Uber | 0.0% | Exited | $0 |
| URI | United Rentals | 0.0% | Exited | $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.
