FERG - Tracking William Von Mueffling's Cantillon Capital Management Portfolio - Q1 2023 Update

2023-05-08 21:06:49 ET

Summary

• William von Mueffling's 13F portfolio value increased this quarter from $11.81B to $12.28B.
• Cantillon added Ferguson plc and increased CDW Corp while decreasing Alphabet and dropping Fidelity National Information Services.
• The portfolio continues to be very concentrated with the top five positions accounting for ~24% of the 13F portfolio.

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 5/4/2023. 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 Q4 2022.

This quarter, William von Mueffling's 13F portfolio value increased ~4% from $11.81B to $12.28B. The number of holdings decreased from 38 to 37. The portfolio continues to be heavily concentrated with the top five positions representing ~24% of the total 13F holdings. The largest stake is S&P Global which accounts for 5.74% of the portfolio. The largest five positions are S&P Global, Broadcom, Analog Devices, Visa, and Thermo Fisher Scientific.

New Stakes:

Ferguson plc ( FERG ): FERG is a small 1.13% of the portfolio position established this quarter at prices between ~$128 and ~$150 and the stock currently trades at ~$141.

Stake Disposals:

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 disposal this quarter was at prices between ~$50 and ~$78. The stock currently trades at ~$56.

Endeavor Group Holdings ( EDR ): The very small 0.76% of the portfolio stake in EDR was eliminated this quarter.

Stake Increases:

Microsoft Corp. ( MSFT ): MSFT is a 3.35% 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 this quarter at prices between ~$222 and ~$281. The stock is now at ~$309.

CME Group ( CME ): CME is a 2.77% 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. There was a ~12% stake increase this quarter at prices between ~$169 and ~$192. The stock currently trades at ~$186.

IQVIA Holdings ( IQV ): The 2.63% 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. The stock is now at ~$190. The last three quarters have seen only minor adjustments.

Interactive Brokers Group, Inc. ( IBKR ): IBKR is a 2.42% of the portfolio position purchased during Q2 & Q3 2017 at prices between ~$34 and ~$46. There was a ~45% stake increase in the last two quarters at prices between ~$64 and ~$89. The stock is now at $78.11.

CDW Corp. ( CDW ): CDW is a 1.94% of the portfolio position built in the last two quarters at prices between ~$153 and ~$214 and the stock currently trades at ~$166.

Beckton Dickinson ( BDX ) and SS&C Technologies ( SSNC ): These two small (less than ~2.5% of the portfolio each) stakes were increased this quarter.

Stake Decreases:

S&P Global ( SPGI ) previously McGraw Hill Financial : SPGI is currently the second-largest position at 5.74% 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 ~52% selling at prices between ~$97 and ~$479. The stock currently trades at ~$355.

Broadcom Inc. ( AVGO ): AVGO is a top-three 5.15% 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. The period since has seen a combined one-third reduction at prices between ~$192 and ~$665. The stock currently trades at ~$629.

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 ~$185 and the stake is at ~5% of the portfolio. The last few quarters have seen only minor adjustments.

Visa Inc. ( V ): V is a ~4% 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 ~$232.

Thermo Fisher Scientific ( TMO ): TMO is a 3.85% 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 last four years have seen a combined ~19% selling at prices between ~$270 and ~$667. The stock currently trades at ~$543.

Agilent Inc. ( A ): Agilent is a 3.72% 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 have only been minor adjustments since. The stock currently trades at ~$132.

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 this quarter at prices between ~$87 and ~$109. The stock currently trades at ~$108 and the stake is at 3.48% of the portfolio.

Applied Materials ( AMAT ): The 3.36% 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 have only been minor adjustments. The stock currently trades at ~$116.

Willis Towers Watson plc ( WTW ): The 3.35% 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 ~$229. The stake was reduced by ~50% over the four years through Q3 2021 at prices between ~$117 and ~$235. The next two quarters saw a ~12% stake increase while in the last four quarters there was minor trimming.

Equifax ( EFX ): EFX is a 3.22% 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 has seen a ~17% selling at prices between ~$106 and ~$295. The stock is now at ~$201.

Intercontinental Exchange ( ICE ): ICE is a 3.20% 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 ~$107. The last three years have seen only minor adjustments.

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

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 ~$333. There was a ~10% stake increase in Q1 2019. The last several quarters have seen minor trimming.

American Tower ( AMT ): AMT is a ~3% 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 ~$193.

VeriSign Inc. ( VRSN ): The 2.91% 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. There have only been minor adjustments since. The stock currently trades at ~$220.

Brunswick Corp. ( BC ): BC is a 2.77% 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 $82.68. The last several quarters have seen only minor adjustments.

Note: Cantillon has a ~6.5% ownership stake in the business.

CBRE Group, Inc. ( CBRE ): The 2.58% 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. Since then, there have only been minor adjustments. The stock is now at $73.14.

Zoetis Inc. ( ZTS ): The 2.42% 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 ~$185. The last five quarters have seen only minor adjustments.

BlackRock, Inc. ( BLK ): The 2.36% 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 ~$643. The last two quarters have seen only minor adjustments.

Entegris ( ENTG ): The 1.94% ENTG stake was established in H2 2019 at prices between ~$36 and ~$51. The last two quarters saw another ~43% stake increase at prices between ~$64 and ~$110. The stock currently trades at $79.45. There was a minor ~2% trimming this quarter.

Armstrong World Industries ( AWI ), Adobe ( ADBE ), Autodesk ( ADSK ), Credit Acceptance Corporation ( CACC ), Ecolab Inc. ( ECL ), Fastenal ( FAST ), Hayward Holdings ( HAYW ), Moody's Corp. ( MCO ), Taiwan Semiconductor ( TSM ), and TriNet Group, Inc. ( TNET ): These small (less than ~2.5% of the portfolio each) positions were reduced during the quarter.

Note: Cantillon controls ~6.2% of TriNet Group.

The spreadsheet below highlights changes to von Mueffling's 13F stock holdings in Q1 2023:

For further details see: