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 Von Mueffling’s regulatory 13F Form filed on 10/30/2020. 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 Q2 2020.

This quarter, Von Mueffling’s 13F portfolio value increased ~4% from $11.51B to $11.96B. The number of holdings remained steady at 35. The portfolio continues to be heavily concentrated with the top five positions representing ~28% of the total 13F holdings. The largest stake is S&P Global which accounts for 7.86% of the portfolio. The largest five positions are S&P Global, Alphabet Inc., Fidelity National Information Services, Analog Devices, and Visa.

New Stakes:

None.

Stake Disposals:

None.

Stake Increases:

None.

Stake Decreases:

S&P Global (SPGI) previously McGraw Hill Financial: SPGI is currently the largest position at 7.86% of the portfolio. It was established in Q1 2015 at prices between $86 and $109. Q3 2015 saw a huge ~140% increase at prices between $85 and $107 and that was followed with another ~75% increase next quarter at prices between $87 and $100. There was a further ~20% stake increase in Q1 2016 at prices between $81 and $100. Since then, the position had seen a one-third selling at prices between $97 and ~$310. The stock currently trades at ~$323. Last two quarters have seen only minor adjustments.

Alphabet Inc. (GOOG) (GOOGL): GOOG is Von Mueffling’s second-largest position at 6.18% of the portfolio. The original stake was established in 2010 and doubled in 2011 at much lower prices. The last significant buying happened in Q2 2014 when the position was increased by ~14% at prices between $510 and $580. The stake has seen selling since Q3 2016: ~40% combined reduction at prices between ~$700 and ~$1530. The stock currently trades at ~$1,621. Cantillon is harvesting huge long-term gains. Last two 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. Q3 2013 saw a 15% increase at prices between $43 and $48 and the following quarter saw another 44% increase at prices between $49 and $57. The stock currently trades well above those ranges at ~$125. The four years through Q1 2020 had seen a combined ~50% selling at prices between $58 and ~$158. Last two quarters have seen only minor adjustments.

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 stock currently trades at ~$119 and the stake is at 4.82% of the portfolio. The three years through Q1 2020 had seen a combined reduction of ~28% at prices between $72 and ~$125.

Visa Inc. (V): V is a 4.32% 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 ~25% at prices between ~$90 and ~$214. The stock currently trades at ~$182. Last two quarters have seen only minor adjustments.

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American Tower (AMT): AMT is a 4.20% 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 ~25% at prices between ~$103 and ~$260. The stock currently trades at ~$230. Last two quarters have seen only minor adjustments.

Willis Towers Watson plc (WLTW): The 4.10% 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 WLTW shares. The original position is from Q3 2013 and their overall cost-basis is ~$110 compared to the current price of ~$183. There was a ~12% increase in Q3 2016 at prices between $120 and $133. Since then, the stake was reduced by ~30% at prices between ~$117 and ~$220. Last two quarters have seen only minor adjustments.

Zoetis Inc. (ZTS): The ~4% ZTS stake was established during Q4 2015 and Q1 2016 at prices between $39 and $48. That original stake has since been sold down by ~50% at prices between $45 and $146. The stock currently trades at ~$159. Last two quarters have seen only minor adjustments.

Intercontinental Exchange (ICE): ICE is a 3.57% 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 stock currently trades at $94.40. The three years through Q1 2020 saw a combined ~28% selling at prices $57 and ~$102. Last two quarters have seen only minor adjustments.

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

Ecolab Inc. (ECL): ECL is a 3.68% 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 and Q1 2015 saw a combined one-third increase at prices between $99 and $117. Since then, the position was sold down by one-third at prices between ~$103 and ~$211. The stock currently trades at ~$184. Last two quarters have seen only minor adjustments.

Thermo Fisher Scientific (TMO): TMO is a 3.58% 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 stock currently trades well above those ranges at ~$473. Last six quarters have seen only minor adjustments.

Broadcom Inc. (AVGO): AVGO is a 3.54% 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. Q3 2018 saw a one-third reduction at prices between $202 and $251, while in Q1 2019, there was a ~10% stake increase at prices between $230 and $300. Q2 2019 also saw another ~20% stake increase at prices between $252 and $321. The stock currently trades at ~$350. Last five quarters have seen only minor adjustments.

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Agilent Inc. (A): Agilent is a 3.47% 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. The stock currently trades well above those ranges at ~$102. 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. Next two quarters had seen a ~20% stake increase at prices between $65.50 and $82. Last four quarters have seen only minor adjustments.

Equifax (EFX): EFX is a ~3% of the portfolio stake purchased in Q4 2016 at prices between $112 and $135. H1 2017 saw an ~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 stock is now at ~$137. Last two years have seen only minor adjustments.

CBRE Group Inc. (CBRE): The 2.65% 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. The stake had seen a ~20% selling since. The stock is now at $50.40. Last two quarters have seen only minor adjustments.

CME Group (CME): CME is a 2.57% 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 stock currently trades well above those ranges at ~$151. The four years through Q1 2020 had seen a combined ~30% selling at prices between ~$85 and ~$225. Last two quarters have seen only minor adjustments.

Autodesk (ADSK): ADSK is a 2.48% of the portfolio stake established in Q4 2019 at prices between $140 and $185 and the stock currently trades at ~$236. Last three quarters have seen only minor adjustments.

VeriSign Inc. (VRSN): The 2.54% VRSN position saw a ~40% increase in Q4 2018 at prices between $134 and $165. The original stake was from Q3 2017 at prices between $93 and $106. The stock currently trades well above those ranges at ~$191. Last seven quarters have seen only minor adjustments.

Becton Dickinson (BDX): BDX is a 2.34% 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 ~$231. Last five quarters have seen only minor adjustments.

Aon plc (AON): The 2.41% AON position was increased by ~50% in Q2 2018 at prices between $135 and $145 and the stock is now at ~$184. There was a ~10% stake increase in Q1 2019. Last six quarters have seen only minor adjustments.

Fastenal (FAST) and Armstrong World Industries (AWI): These two positions were established in Q2 2018. The 2.32% FAST stake was purchased at prices between $24 and $28 and the stock currently trades at $43.23. The small 0.73% AWI stake was purchased at prices between $55 and $65. The stock is now at ~$59.90. Last two years have seen only minor adjustments to these two stakes.

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

Brunswick Corp. (BC): BC is a ~2% 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 stock is currently at $63.71. Last three quarters have seen a ~20% stake increase at prices between $26.50 and $66. There was marginal trimming this quarter.

TriNet Group Inc. (TNET): The ~2% 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. The stock has doubled and currently goes for $68.92. Last seven quarters have seen only minor adjustments.

Note: Cantillon controls ~6% of TriNet Group.

SS&C Technologies (SSNC): SSNC is a ~2% of the portfolio position built in H2 2016 at prices between $28.50 and $33.50. Q1 2018 saw a ~75% stake increase at prices between $40.50 and $53.50 and that was followed with a ~37% increase in Q4 2018 at prices between $41.50 and $56. There was another ~20% stake increase in Q2 2019 at prices between $54 and $68. It is now at $59.22. Last five quarters have seen only minor adjustments.

Applied Materials (AMAT), Microsoft Corp. (MSFT), and W. R. Grace & Co. (GRA): These were three new positions established in Q1 2020. The ~2% AMAT stake was purchased at prices between $38 and $67 and increased by ~62% this quarter at prices between $42 and $60. The stock currently trades at $59.23. MSFT is a 1.17% of the portfolio stake established at prices between $135 and $189 and it is now at ~$203. The small 0.56% GRA position was purchased at prices between $28 and $70 and it currently goes for $43.49. All three positions saw marginal trimming during the quarter.

Facebook Inc. (FB): FB is a 2.24% of the portfolio stake established in Q1 2018 at prices between $152 and $193 and increased by ~60% next quarter at prices between $155 and $202. The stock is currently at ~$263.

Taiwan Semiconductor (TSM): The 2.56% 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. It is now at $83.87.

Entegris (ENTG): ENTG is a 1.63% of the portfolio position established in Q3 2019 at prices between $35.50 and $48 and increased by ~25% next quarter at prices between $45.50 and $51. The stock currently trades above those ranges at $74.77.

Credit Acceptance Corporation (CACC), Interactive Brokers Group Inc. (IBKR), Moody’s Corp. (MCO), and Primerica Inc. (PRI): These small stakes (less than ~1.5% of the portfolio each) saw minor increases this quarter.

The spreadsheet below highlights changes to Mueffling’s 13F stock holdings in Q3 2020:

William Von Mueffling - Cantillon Capital

Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.



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