IQV - Tracking William Von Mueffling's Cantillon Capital Management Portfolio - Q2 2023 Update

2023-08-17 03:12:23 ET

Summary

• William von Mueffling's 13F portfolio value increased by 17% to $14.31B in Q2 2023.
• The top five positions in the portfolio are Broadcom, S&P Global, Analog Devices, Visa, and Alphabet.
• New stakes include Live Nation Entertainment and Tradeweb Markets, while Armstrong World Industries was disposed of.

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 8/9/2023. 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 2023.

This quarter, William von Mueffling's 13F portfolio value increased ~17% from $12.28B to $14.31B. The number of holdings increased from 37 to 38. The portfolio continues to be heavily concentrated with the top five positions representing ~25% of the total 13F holdings. The largest stake is Broadcom, which accounts for 6.35% of the portfolio. The largest five positions are Broadcom, S&P Global, Analog Devices, Visa, and Alphabet.

New Stakes:

Live Nation Entertainment ( LYV ) and Tradeweb Markets ( TW ): LYV is a very small 0.71% of the portfolio stake established this quarter at prices between ~$65 and ~$91 and the stock currently trades at $85.60. The 0.59% TW position was purchased at prices between ~$67 and ~$79 and it is now above that range at ~$83.

Stake Disposals:

Armstrong World Industries ( AWI ): The very small ~1% stake in AWI was disposed during the quarter.

Stake Increases:

Broadcom Inc. ( AVGO ): AVGO is now in the top position at 6.35% of the portfolio. It was 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. The period since had seen a combined one-third reduction at prices between ~$192 and ~$665. The stock currently trades at ~$833. This quarter saw a ~6% stake increase.

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 saw a ~52% selling at prices between ~$97 and ~$479. The stock currently trades at ~$387. There was a ~6% stake increase this quarter.

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 saw 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 ~$177 and the stake is at 4.49% of the portfolio. This quarter saw a ~6% stake increase.

Visa Inc. ( V ): V is a 3.89% 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 ~37% at prices between ~$90 and ~$251. The stock currently trades at ~$239. There was a ~6% stake increase this quarter.

Alphabet Inc. ( GOOG ) ( GOOGL ) : The original GOOG stake was established in 2010 and doubled in 2011 at very low 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 has seen selling since Q3 2016: ~50% combined reduction through 2022 at prices between ~$35 and ~$151. That was followed with another ~50% selling last quarter at prices between ~$87 and ~$109. The stock currently trades at ~$129 and the stake is at 3.67% of the portfolio. This quarter saw a ~6% stake increase.

Applied Materials ( AMAT ): The 3.61% 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. This quarter also saw a ~6% stake increase. The stock currently trades at ~$138.

Microsoft Corp. ( MSFT ): MSFT is a 3.61% of the portfolio stake established in Q1 2020 at prices between $135 and $189. There was a ~55% stake increase in Q2 2021 at prices between ~$240 and ~$270. The three quarters through Q3 2022 saw another ~30% increase at prices between ~$242 and ~$335. There was a ~20% further increase last quarter at prices between ~$222 and ~$281. That was followed with a ~6% increase this quarter. The stock is now at ~$320.

Equifax ( EFX ): EFX is a 3.41% 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. The period since Q1 2020 saw a ~17% selling at prices between ~$106 and ~$295. This quarter saw a ~6% increase. The stock is now at ~$193.

Thermo Fisher Scientific ( TMO ): TMO is a 3.31% 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. The four years through Q1 2023 saw a combined ~19% selling at prices between ~$270 and ~$667. This quarter saw a ~11% stake increase at prices between ~$508 and ~$591. The stock currently trades at ~$529.

Intercontinental Exchange ( ICE ): ICE is a 3.17% of the portfolio stake established in Q4 2014 at prices between $39 and $45. The following two quarters saw the position almost double 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 ~$114. There was a ~6% stake increase this quarter.

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

Agilent ( A ): Agilent is a 3.15% 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 saw a ~20% stake increase at prices between $65.50 and $82. There was a ~13% further increase this quarter at prices between ~$115 and ~$141. The stock currently trades at ~$121.

Willis Towers Watson ( WTW ): The 3.10% 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 ~$196. The stake was reduced by ~50% over the four years through Q3 2021 at prices between ~$117 and ~$235. There was a ~6% stake increase this quarter.

Aon plc ( AON ): The ~3% AON position was increased by ~50% in Q2 2018 at prices between $135 and $145 and the stock is now at ~$321. There was a ~10% stake increase in Q1 2019. This quarter also saw a ~6% increase.

IQVIA Holdings ( IQV ): The 2.91% of the portfolio stake in IQV was established in Q1 2021 at prices between $173 and $195. Next quarter saw a ~20% stake increase at prices between ~$195 and ~$247. The three quarters through Q2 2022 saw another ~40% increase at prices between ~$197 and ~$283. That was followed with a ~14% increase this quarter at prices between ~$184 and ~$225. The stock is now at ~$215.

VeriSign Inc. ( VRSN ): The 2.84% 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. That was followed with a ~6% stake increase this quarter. The stock currently trades at ~$205.

Brunswick Corp. ( BC ): BC is a 2.67% 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 saw a ~20% stake increase at prices between $26.50 and $66. The stock is currently at ~$83. There was a ~6% stake increase this quarter.

Note: Cantillon has a ~6.8% ownership stake in the business.

CBRE Group, Inc. ( CBRE ): The 2.61% 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 ~$82. There was a ~6% stake increase this quarter.

American Tower ( AMT ): AMT is a 2.54% 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. Since then, the position was reduced by ~39% at prices between ~$103 and ~$266. The stock currently trades at ~$178. This quarter saw a ~6% stake increase.

CME Group ( CME ): CME is a 2.45% 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 saw a combined ~30% selling at prices between ~$85 and ~$225. The last two quarters saw a ~20% stake increase at prices between ~$170 and ~$195. The stock currently trades at ~$206.

BlackRock, Inc. ( BLK ): The 2.41% of the portfolio position in BLK was built over the four quarters through Q3 2022 at prices between ~$550 and ~$970 and the stock currently trades at ~$672. There was a ~15% stake increase this quarter at prices between ~$626 and ~$711.

Adobe ( ADBE ), Autodesk ( ADSK ), Becton, Dickinson ( BDX ), Credit Acceptance Corporation ( CACC ), CDW Corp. ( CDW ), Entegris ( ENTG ), Ecolab Inc. ( ECL ), Fastenal ( FAST ), Ferguson plc ( FERG ), Hayward Holdings ( HAYW ), Interactive Brokers Group, Inc. ( IBKR ), Moody's Corp. ( MCO ), SS&C Technologies ( SSNC ), TriNet Group, Inc. ( TNET ), and Taiwan Semiconductor ( TSM ): These small (less than ~2.5% of the portfolio each) stakes were increased this quarter.

Note: Cantillon controls ~6.2% of TriNet Group.

Stake Decreases:

Zoetis Inc. ( ZTS ): The 1.76% 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. This quarter also saw a ~18% reduction at prices between ~$161 and ~$186. The stock currently trades at ~$186.

The spreadsheet below highlights changes to von Mueffling's 13F stock holdings in Q2 2023:

For further details see: