"Tracking William Von Mueffling’s Cantillon Capital Management Portfolio – Q3 2016 Update"
"William Von Mueffling's U.S. long portfolio increased ~19% this quarter from $5.94B to $7.08B.Mueffling substantially increased Allergan plc, TriNet Group, and Visa while decreasing Sensata Technologies. They also added NXP Semiconductors and SS&C Technologies.The portfolio continues to be very concentrated with the top five positions accounting for ~37% of the US long portfolio.This article is part of a series that provides an ongoing analysis of the changes made to William Von Mueffling’s US stock portfolio on a quarterly basis. It is based on Mueffling’s regulatory  filed on 11/07/2016. Please visit our  to get an idea of his investment philosophy and our  highlighting the fund’s moves during Q2 2016.This quarter, Mueffling’s US long portfolio increased 19.20% from $5.94B to $7.08B. The number of holdings increased from 25 to 28: stakes in iShares MSCI ACWI Index, NXP Semiconductors, and SS&C Technologies were added during the quarter. The portfolio continues to be heavily concentrated with the top five positions representing 37.06% of the total US long holdings. The largest stake is Alphabet Inc. which accounts for 9.42% of the US long portfolio. The largest five positions are Alphabet Inc., Fidelity National Information Services, S&P Global, Analog Devices, and Willis Towers Watson.New Stakes:iShares MSCI ACWI Index (ACWI), NXP Semiconductors (NXPI), and SS&C Technologies (SSNC): These are the thee new additions this quarter. ACWI is a 1.52% of the portfolio stake established at prices between $55.61 and $59.63 and it now trades at $57.90. NXPI is a fairly large 3.92% position purchased at prices between $76 and $102 and the stock is now at $98.72. SSNC is a very small 0.60% stake established at prices between $28 and $34 and the stock is now at $32.04.Note: NXPI share price experienced a 25% spike following Qualcomm’s (QCOM) announcement to acquire NXPI for $110 per share cash last month.Stake Disposals:None.Stake Decreases:Sensata Technologies Holding N.V. (ST): ST is a 2.95% of the US long portfolio position established in Q2 2014 at prices between $44 and $50. The first three quarters of 2015 saw the stake more than doubled at prices between $49 and $59. The stock currently trades well below his purchase price ranges at $36.52. This quarter saw a ~12% trimming at prices between $34.50 and $39.90.Ambev SA (ABEV): ABEV is a small ~1% of the US long portfolio position established in November 2013 as a result of a stock-swap merger transaction that resulted in ABV holders receiving 5 shares of Ambev SA for each share they held. Q1 2014 saw a one-third stake increase at prices between $6.23 and $7.45. In Q3 2015, the stake was reduced by ~57% at prices between $4.59 and $6.25. Last four quarters have seen only minor activity. The stock currently trades at $5.57.American Tower (AMT): AMT is a 2.18% position established in Q1 2016 at prices between $84 and $102 and increased by ~50% last quarter at prices between $103 and $113. The stock currently trades just above those ranges at $115. This quarter saw marginal trimming.Analog Devices (ADI): ADI is a long-term position that has been in the portfolio since 2010. At the time, it accounted for just over 10% of the US long portfolio. The stake was increased by two-thirds in 2011 as well. The last major activity was in Q4 2014 when the position saw a ~18% increase at prices between $43 and $58. The stock currently trades at $64.36. It is Mueffling’s fourth-largest position at 6.37% of the US long portfolio.Agilent Inc. (A): Agilent is a medium-sized 2.98% of the US long portfolio position established in Q4 2015 at prices between $33.74 and $42.36. The stock currently trades well above that range at $45.71. Last three quarters have seen minor reductions.Alphabet Inc. (GOOG) (GOOGL): GOOG is Mueffling’s largest position at 9.42% of the US long 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. Last nine quarters have seen only very minor activity. The stock currently trades at $783. Mueffling is sitting on huge long-term gains on this position.Baidu Inc. (BIDU): BIDU is a large 5.32% portfolio stake first purchased in 2012. The original position was increased by over 30% in Q1 2013 at prices between $84 and $113 and another 30% in the following quarter at prices between $83 and $103. Since then, the activity has been very minor. The stock currently trades at $172. Mueffling is sitting on large gains on this position.Cimpress (CMPR) previously VistaPrint: CMPR was a minutely small 0.17% of the US long portfolio position established in Q3 2014. The following quarter saw the stake increased to a 1.52% of the US long portfolio position at prices between $52.63 and $75.98. Q2 2015 saw a ~15% increase at prices between $80.51 and $91.16 and the following quarter saw a further ~38% increase at prices between $64.53 and $84.51. The stock currently trades at $84.74. The stake is now at 2.28% of the US long portfolio. Last four quarters have seen only minor activity.CME Group (CME): CME is a medium-sized 3.79% of the US long 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 above those ranges at $105. Last three quarters have seen only very minor adjustments.Credit Acceptance Corporation (CACC): CACC is a ~1% of the US long portfolio position first purchased in 2012. The original stake was increased by around 50% in Q2 2013 at prices between $96 and $122. The position has seen a very minor ~10% trimming since. The stock currently trades well above their purchase price ranges at ~$168.Ecolab Inc. (ECL): ECL is a large 5.33% of the US long 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 saw a ~21% increase at prices between $101 and $115 and the following quarter saw a further ~10% increase at prices between $99 and $117. Since then, the activity has been very minor. The stock currently trades at $113.Fidelity National Information Services (FIS): FIS was a minute 0.20% of the US long portfolio position established in Q1 2013. In Q2 2013, the position was increased to a large 6.11% of the US long portfolio stake at prices between $39 and $46. Q3 2013 saw a 15% stake 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 $76.50. The almost three years since have seen only minor activity. FIS is Mueffling’s second-largest position at 8.18% of the US long portfolio.Harley Davidson (HOG): HOG is a fairly large 4.20% of the US long portfolio position. The original stake was established in Q2 2013 at prices between $50 and $60. The position was increased by 56% in Q3 2013 at prices between $54 and $65. Q2 2014 also saw a ~16% increase at prices between $65 and $74. The stock currently trades at $56.52. For investors attempting to follow Mueffling, HOG is a good option to consider for further research. Last two years have seen a combined ~10% overall reduction.Intercontinental Exchange (ICE): ICE is a 3.94% of the US long portfolio stake established in Q4 2014 at prices between $39 and $45. In Q1 2015, the position was increased by ~50% at prices between $41 and $48 and the following quarter saw a further ~26% increase at prices between $44 and $48. The stock currently trades outside those ranges at $54.43. There was only marginal activity over the last five quarters.Note: The stock prices quoted above are adjusted for the 5-for-1 stock split last month.MSC Industrial Direct Inc. (MSM): MSM is a 1.58% of the US long portfolio position established in Q4 2013 at prices between $76 and $84. Q1 2014 saw a ~85% stake increase at prices between $80 and $89. In Q4 2014, the position saw another ~145% increase at prices between $77 and $86. There was a ~30% reduction last quarter at prices between $69 and $78. The stock currently trades at $75.64. This quarter saw marginal trimming.Primerica Inc. (PRI): PRI is a small 0.83% position purchased last quarter at prices between $43 and $59 and it currently trades at $54.80. There was a marginal reduction this quarter.S&P Global (SPGI) previously McGraw Hill Financial: The top-five 6.91% SPGI stake 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 the following quarter at prices between $87 and $100. There was a further ~18% stake increase in Q1 2016 at prices between $80.77 and $99.46. The stock currently trades at ~$126. Last two quarters saw minor trimming.Zoetis Inc. (ZTS): The 4.80% ZTS stake was established in Q4 2015 at prices between $41 and $48 and increased by ~170% the following quarter at prices between $39 and $48. It currently trades just outside those ranges at ~$50.  Last two quarters saw minor trimming.Stake Increases:Allergan plc (AGN) and TriNet Group Inc. (TNET): These two positions were established last quarter and increased substantially this quarter. AGN is a 2.86% of the portfolio stake established at prices between $202 and $278 and increased by one-third this quarter at prices between $231 and $260. The stock is now below those ranges at ~$200. TNET is a small 0.83% portfolio stake established last quarter at prices between $14 and $21 and increased by over 500% this quarter at prices between $20.53 and $22.65. The stock is now at $20.44. The aggressive build-ups indicate a clear bullish bias toward these businesses.Bitauto Holding (BITA): BITA is a small ~1% of the US long portfolio position established in Q3 2014 at prices between $46 and $96. Q1 2015 saw a ~60% increase at prices between $47 and $89. Q3 2015 also saw a further ~38% increase at prices between $25 and $51. Q1 2016 saw another ~18% stake increase at prices between $16 and $28. The stock currently trades at $25.65. This quarter also saw another ~21% increase at prices between $25 and $33.CBRE Group Inc. (CBG) and ServiceMaster Global Holdings (SERV): These two positions were established in Q1 2016 and increased substantially over the last two quarters. The 3.36% stake in CBG was purchased at prices between $23.32 and $34.58 and increased by ~125% over the last two quarters at prices between $24.54 and $31.04. The stock is now at $27.18. The medium-sized 3.12% SERV position was purchased at prices between $35.13 and $42.21 and increased by ~43% since at prices between $35.42 and $41.23. It currently trades at $36.41. For investors attempting to follow Mueffling, these two stocks are good options to consider for further research.Note 1: Jeffrey Ubben’s ValueAct has a ~10% ownership stake in CBRE Group.Note 2: ServiceMaster was taken private in 2007 in a private equity transaction. In June 2014, it had an IPO at $17 per share. The stock has more than doubled since.Visa Inc. (V): V is a medium-sized 3.66% stake established in Q4 2015 at prices between $70 and $80 and increased by ~130% since at prices between $68 and $83. The stock is now at $82.51.Willis Towers Watson plc (WLTW): The large (top five) 6.18% stake came about as a result of the merger between Willis Group Holdings and Towers Watson that closed on January 6, 2016. It was structured as a merger-split-rename transaction and the resultant entity was named Willis Towers Watson plc.  Cantillon’s large stake in Willis Group Holdings was converted to WLTW shares. There was a ~12% increase this quarter at prices between $120 and $133. The original position is from Q3 2013 and his overall cost-basis is ~$110 compared to the current price of ~$118.The spreadsheet below highlights changes to Mueffling’s US stock holdings in Q3 2016:"