Tracking Cantillon Capital Management Portfolio: Q2 2022 Update

This article is part of a series that provides an ongoing analysis of the changes made to William von Mueffling’s 13F stock portfolio on a quarterly basis. It is based on William von Mueffling’s regulatory 13F Form filed on 8/3/2022. Please visit our Tracking William von Mueffling’s Cantillon Capital Management Portfolio series to get an idea of his investment philosophy and our previous update for the fund’s moves during Q1 2022.

This quarter, William von Mueffling’s 13F portfolio value decreased ~15% from $14.01B to $11.98B. The number of holdings increased from 36 to 38. The portfolio continues to be heavily concentrated with the top five positions representing ~26% of the total 13F holdings. The largest stake is Alphabet which accounts for 7.62% of the portfolio. The largest five positions are Alphabet Inc., S&P Global, Broadcom, Analog Devices, and American Tower.

New Stakes:

Adobe (ADBE) and Hayward Holdings (HAYW): These are the new positions this quarter. ADBE is a 1.18% of the portfolio position purchased at prices between ~$361 and ~$469 and the stock currently trades at ~$425. HAYW had an IPO in March 2021. Shares started trading at ~$17 and currently goes for $11.71. The very small 0.66% of the portfolio position was established this quarter at prices between $13.33 and $17.28.

Stake Increases:

IQVIA Holdings (IQV): The 2.85% of the portfolio stake in IQV was established in Q1 2021 at prices between $173 and $195 and it is now at ~$233. Next quarter saw a ~20% stake increase at prices between ~$195 and ~$247. Last three quarters have seen another ~40% increase at prices between ~$197 and ~$283.

CBRE Group, Inc. (CBRE): The 2.79% stake in CBRE was purchased in Q1 2016 at prices between $23 and $34.50 and increased by ~125% over the next two quarters at prices between $24.50 and $31. Q1 2021 saw a ~30% selling at prices between $59.50 and $81. The stock is now at $83.60. Last two quarters have seen minor increases.

VeriSign, Inc. (VRSN): The 2.46% VRSN stake was purchased in Q3 2017 at prices between $93 and $106. The position saw a ~40% increase in Q4 2018 at prices between $134 and $165. There was a ~23% stake increase in Q1 2021 at prices between $188 and $216. The stock currently trades at ~$196. Last two quarters have seen minor increases.

Brunswick Corp. (BC): BC is a 2.37% of the portfolio stake established in Q2 2019 at prices between $41.50 and $54.50 and increased by ~45% next quarter at around the same price range. The three quarters through Q2 2020 had seen a ~20% stake increase at prices between $26.50 and $66. The stock is currently at ~$78. Last several quarters have seen only minor adjustments.

Note: Cantillon has a ~5.8% ownership stake in the business.

Microsoft Corp. (MSFT): MSFT is a 2.29% of the portfolio stake established in Q1 2020 at prices between $135 and $189 and it is now at ~$282. There was a ~55% stake increase in Q2 2021 at prices between ~$240 and ~$270. Last two quarters have seen another ~16% increase at prices between ~$242 and ~$335.

Becton, Dickinson (BDX): BDX is a 2.26% of the portfolio stake established in Q4 2016 at prices between $163 and $180 and increased by ~30% the following quarter at prices between $165 and $185. There was a ~22% selling over the six quarters through Q3 2018 at prices between $166 and $262. Q2 2019 saw a ~20% stake increase at prices between $223 and $252. The stock is now at ~$245. Last three years have seen only minor adjustments.

Autodesk (ADSK), BlackRock, Inc. (BLK), Endeavor Group Holdings (EDR), and Interactive Brokers Group, Inc. (IBKR): These small (less than ~2% of the portfolio each) stakes were increased this quarter.

Stake Increases:

Alphabet Inc. (GOOG) (GOOGL): GOOG is Cantillon’s largest position at 7.62% of the portfolio. The original stake was established in 2010 and doubled in 2011 at much lower prices. The last significant buying was in Q2 2014 when the position was increased by ~14% at prices between $25.50 and $29. The stake had seen selling since Q3 2016: ~50% combined reduction at prices between ~$35 and ~$151. The stock currently trades at ~$119.

Note: the prices quoted above are adjusted for the 20-for-1 stock split last month.

S&P Global (SPGI) previously McGraw Hill Financial: SPGI is currently the second-largest position at ~6% of the portfolio. It was established in Q1 2015 at prices between $86 and $109. The stake was built through Q1 2016 at around the same price range. Since then, the position has seen a ~50% selling at prices between ~$97 and ~$479. The stock currently trades at ~$368.

Broadcom Inc. (AVGO): AVGO is a top-three 4.18% of the portfolio stake established in Q1 2017 at prices between $174 and $227 and increased by ~55% in Q3 2017 at prices between $230 and $257. There was another ~20% stake increase in Q1 2018 at prices between $228 and $273. Last three years have seen a combined ~20% reduction at prices between ~$192 and ~$665. The stock currently trades at ~$547.

Analog Devices (ADI): ADI is a long-term stake that has been in the portfolio since 2010. At the time, it accounted for just over 10% of the portfolio. The position was increased by two-thirds in 2011 as well. The last major buying was in Q4 2014 when the stake saw a ~20% increase at prices between $43 and $58. The three years through Q1 2020 had seen a combined ~28% reduction at prices between ~$72 and ~$125. Q1 2021 saw a similar reduction at prices between $144 and $164. The stock currently trades at ~$176 and the stake is at ~4% of the portfolio. Last few quarters have seen only minor adjustments.

American Tower (AMT): AMT is a 3.93% position established in Q1 2016 at prices between $84 and $102 and increased by ~50% the following quarter at prices between $103 and $113. There was another ~150% increase in Q4 2016 at prices between $101 and $117. The following years saw the position reduced by ~25% at prices between ~$103 and ~$266. Since then, the stake has seen only minor adjustments. The stock currently trades at ~$269.

Thermo Fisher Scientific (TMO): TMO is a 3.89% of the portfolio position established in Q3 2018 at prices between $206 and $249 and increased by ~90% next quarter at prices between $208 and $252. Last three years have seen a combined ~15% selling at prices between ~$270 and ~$667. The stock currently trades at ~$588.

Visa Inc. (V): V is a 3.78% stake established in Q4 2015 at prices between $70 and $80. It was increased by ~125% in 2016 at prices between $70 and $83. Q1 2017 saw another ~15% stake increase at prices between $78 and $90. Since then, the position was reduced by roughly one-third at prices between ~$90 and ~$251. The stock currently trades at ~$209.

Agilent (A): Agilent is a 3.43% of the portfolio position established in Q4 2015 at prices between $33.50 and $42.50. Q4 2016 saw a ~17% increase at prices between $43 and $48. There was a ~15% reduction in Q1 2018 at prices between $65 and $75 and that was followed with a ~10% trimming over the next two quarters. The following two quarters had seen a ~20% stake increase at prices between $65.50 and $82. The stock currently trades at ~$135. Last eleven quarters have seen only minor adjustments.

Fidelity National Information Services (FIS): FIS was a minutely small position in Q1 2013. The following quarter saw the stake increased to a large ~6% position at prices between $39 and $46. Recent activity follows. The five years through Q3 2021 had seen a combined ~50% selling at prices between $58 and ~$157 while next quarter there was a ~9% stake increase at prices between ~$102 and ~$125. The stock currently trades at ~$104 and the stake is at 3.24% of the portfolio. There was marginal trimming this quarter.

Equifax (EFX): EFX is a 3.10% of the portfolio stake purchased in Q4 2016 at prices between $112 and $135. H1 2017 saw a ~80% stake increase at prices between $117 and $143 and that was followed with a ~130% increase in Q3 2017 at prices between $93 and $146. Q3 2018 saw a ~30% stake increase at prices between $123 and $138. Last three years have seen a ~14% selling at prices between ~$106 and ~$295. The stock is now at ~$213.

Intercontinental Exchange (ICE): ICE is a ~3% of the portfolio stake established in Q4 2014 at prices between $39 and $45. The following two quarters saw the position almost doubled at prices between $44 and $48. There was another ~17% increase in Q4 2016 at prices between $52.50 and $60. The three years through Q1 2020 saw a combined ~28% selling at prices $57 and ~$102. The stock currently trades at ~$103. Last nine quarters have seen only minor adjustments.

Note: Prices are adjusted for the 5-for-1 stock-split in October 2016.

Willis Towers Watson (WTW): The ~3% stake came about because of the merger between Willis Group Holdings and Towers Watson that closed in January 2016. Cantillon’s large stake in Willis Group Holdings got converted to WTW shares. The original position is from Q3 2013, and their overall cost-basis is ~$110 compared to the current price of ~$208. The stake was reduced by ~50% over the four years through Q3 2021 at prices between ~$117 and ~$235. Last two quarters had seen a ~12% stake increase while this quarter there was a marginal reduction.

CME Group (CME): CME is a 2.78% of the 13F portfolio stake established in Q4 2014 at prices between $78 and $93. Q4 2015 saw a ~60% stake increase at prices between $87 and $100. The four years through Q1 2020 had seen a combined ~30% selling at prices between ~$85 and ~$225. Last nine quarters have seen only minor adjustments. The stock currently trades at ~$198.

Aon plc (AON): The 2.78% AON position was increased by ~50% in Q2 2018 at prices between $135 and $145 and the stock is now at ~$286. There was a ~10% stake increase in Q1 2019. Since then, there has only been minor adjustments.

Zoetis Inc. (ZTS): The 2.68% ZTS stake was established during Q4 2015 and Q1 2016 at prices between $39 and $48. That original stake had since been sold down by ~50% at prices between $45 and $146. There was another ~20% selling in Q1 2021 at prices between $144 and $169. That was followed with a similar reduction in Q4 2021 at prices between ~$194 and ~$247. The stock currently trades at ~$180. Last two quarters have seen only minor adjustments.

Applied Materials (AMAT): The 2.66% AMAT stake was purchased in Q1 2020 at prices between $38 and $67 and increased by ~60% next quarter at prices between $42 and $60. Since then, there has only been minor adjustments. The stock currently trades at ~$109.

TriNet Group, Inc. (TNET): The 2.32% of the portfolio stake in TNET was established in Q2 2016 with the bulk purchased in the following two quarters at prices between $18.50 and $26. Since then, there has only been minor adjustments. The stock has tripled and currently goes for $84.

Note: Cantillon controls ~6% of TriNet Group.

Ecolab Inc. (ECL): ECL is a 2.31% of the portfolio stake first purchased in 2012. The original position was increased by around 75% in Q1 2013 at prices between $72.50 and $80. Q4 2014 & Q1 2015 saw a combined one-third increase at prices between $99 and $117. Since then, the position was sold down by ~50% at prices between ~$103 and ~$236. The stock currently trades at ~$167.

Taiwan Semiconductor (TSM): The 2.29% TSM stake was established in Q3 2017 at prices between $34.50 and $38.50. The position saw an almost two-thirds increase in Q1 2018 at prices between $40 and $46.50. Since then, the activity has been minor. The stock is now at $86.51.

Fastenal (FAST): The 2.28% FAST stake was purchased in Q2 2018 at prices between $24 and $28 and the stock currently trades at $51.82. Last four years have seen only minor adjustments.

Note: The prices quoted above for Fastenal are adjusted for the 2-for-1 stock-split in May 2019.

Armstrong World Industries (AWI), Credit Acceptance Corporation (CACC), Entegris (ENTG), Meta Platforms (META) previously Facebook, Moody’s Corp. (MCO), and SS&C Technologies (SSNC): These small stakes (less than ~2% of the portfolio each) were reduced during the quarter.

The spreadsheet below highlights changes to von Mueffling’s 13F stock holdings in Q2 2022: