British Climate Activist’s Hedge Fund Holds Major Stake In Firms Who Can Make Or Break US Communities, Businesses

British billionaire Chris Hohn’s hedge fund holds billions of dollars in shares of two powerful credit-rating companies whose decisions can influence how much American businesses, schools and local governments pay to borrow money.

Moody’s and S&P Global wield enormous influence over borrowing costs across the American economy, with their credit assessments affecting everything from corporate investments to public infrastructure projects. Hohn’s TCI Fund Management holds major stakes in both firms and previously pushed them to adopt climate policies, raising questions about the influence wealthy investors can exert over institutions whose financial judgments carry significant consequences for American communities.

Dr. OJ Oleka, chief executive officer of the State Financial Officers Foundation, told the Daily Caller News Foundation that credit-rating decisions can have consequences extending well beyond Wall Street, particularly for smaller communities that rely on borrowing to finance public infrastructure.

“You’ve got small communities all across the country who are trying to pay for new sewer districts, who are trying to build new schools, who are trying to purchase police cars and fire trucks to keep the people safe in their community and make life better,” Oleka said.

“If they can’t get good credit, despite the fact that they’re strong financially and fiscally, because they won’t bend the knee to leftist ideologues on climate, that is unconscionable,” he added.

TCI Fund Management reported holding approximately 14.3 million shares of Moody’s and 14.1 million shares of S&P Global as of June 30, positions valued at approximately $6.5 billion and $5.7 billion, respectively, according to a Securities and Exchange Commission (SEC) filing.

The Moody’s position represented approximately 8.2% of the company’s outstanding shares, according to a separate SEC filing. Together, the investments accounted for approximately 23% of TCI’s publicly disclosed stock portfolio, making the credit-rating companies among the fund’s largest reported holdings.

TCI declined to comment to the DCNF. Moody’s and S&P Global did not respond to requests for comment.

Hohn, who founded TCI Fund Management and the Children’s Investment Fund Foundation, has a documented history of using shareholder activism to advance climate-related initiatives, including at Moody’s and S&P Global.