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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 13F Form filed on 11/12/2013. Please visit our Tracking Stocks In William Von Mueffling's Investment Funds series to get an idea of his investment philosophy and the fund's moves during Q2 2013.

This quarter, Mueffling's US long portfolio increased ~17% from $3.27B to $3.83B. The number of holdings in the portfolio increased from 21 to 22: a 4.96% position in Oracle Corporation was disposed of and new positions in Grainger W.W. and Willis Group Holdings were established this quarter. The portfolio has become more concentrated as the top five holdings now represent 51.70% of the US long portfolio compared to just over 40% as of last quarter. The largest holding is Baidu Inc. which has been in the portfolio since 2010 and now accounts for 11.08% of the US long portfolio.

Stake Disposals:

Oracle (NYSE:ORCL): ORCL was a fairly large 6.10% of the US long portfolio position in 2009. In 2010 the stake was increased by almost 4 times and was doubled again in 2011. Last year Oracle and Google (NASDAQ:GOOG) were the top two positions and each had an allocation just over 10% of the US long portfolio. The Oracle position was increased by 25% in Q1 2013 at prices between $31 and $37. Last quarter saw an about-turn as the position was reduced by half to a still significant ~5% of the US long portfolio at prices between $30 and $35. This quarter, the position was eliminated at prices between $30 and $34. The stock currently trades at around $34.70. The stake elimination indicates a clear bearish bias.

New Stakes:

Grainger W. W. (NYSE:GWW) & Willis Group Holdings (NYSE:WSH): GWW and WSH are similarly sized small (2.75% and 2.71% of the US long portfolio) stakes established this quarter. GWW stake was established at prices between $247 and $274 and it currently trades at $268. WSH stake was established at prices between $40.50 and $45 and it currently trades at $44.74. The stocks are trading within Mueffling's purchase price ranges and so are good options to consider when following him.

Stake Decreases:

Baidu Inc. (NASDAQ:BIDU): BIDU was a ~5% of the US long portfolio position established in 2012. The stake was increased by over 30% in Q1 2013 at prices between $84 and $113 and another 30% last quarter at prices between $83 and $103. The position was marginally decreased this quarter. The stock currently trades at around $150 having vaulted over 63% during the quarter. Mueffling is bullish on Baidu. However, the stock is trading well above his purchase price ranges and so investors attempting to follow him will have to wait for a better entry point.

Colgate Palmolive (NYSE:CL): CL is a very long-term position which currently accounts for 3.29% of the US long portfolio - in the beginning of the year, it accounted for over 7% of the US long portfolio: the position was reduced by more than half last quarter at prices between $56 and $63 and was marginally reduced this quarter. The stock currently trades at around $65. The activity indicates a bearish bias.

Open Table (NASDAQ:OPEN): OPEN was a small 1.10% of the US long portfolio position first established in 2011. The position was doubled to a 2% stake in 2012. The stake was reduced by more than half last quarter to a 0.88% of the US long portfolio position at prices between $55 and $70. The position was almost eliminated this quarter at prices between $62 and $77. The stock currently trades outside those ranges at around $82. The activity indicates a clear bearish bias.

LKQ Corporation (NASDAQ:LKQ): LKQ is a 5.39% of the US long portfolio position that was reduced by ~24% this quarter at prices between $25.50 and $32. The stock currently trades at $31. The position was first purchased in 2012 and was substantially increased in Q1 2013 at prices between $20 and $24. The stake reduction indicates a mild bearish bias.

Credit Acceptance Corporation (NASDAQ:CACC): CACC was a ~1% of the US long portfolio position established in 2012. The stake was increased by around 50% last quarter to a ~1.50% position at prices between $96 and $122. The position was marginally reduced this quarter and the stock currently trades at around $126. The activity does not indicate a clear bias.

The following positions were marginally reduced this quarter: Analog Devices (NASDAQ:ADI) at 9.55%, Banco Bradesco (NYSE:BBD) at 2.11%, Coca Cola (NYSE:KO) at 8.28%, Ecolab (NYSE:ECL) at 7.72%, Google Inc. at 10.93%, Philip Morris (NYSE:PM) at 3.07%, Priceline Inc. (NASDAQ:PCLN) at 9.34%, Solera Holdings (NYSE:SLH) at 2.79%, and Waters Corporation at 3.45%. The minor activity does not indicate a change in bias.

Stake Increases:

Harley Davidson (NYSE:HOG): HOG is a large 10.80% of the US long portfolio position that was established last quarter at prices between $50 and $60. The stake was increased by 56% this quarter at prices between $54 and $65. The stock currently trades at around $64. It is currently his third largest position after Baidu and Google. For investors attempting to follow Mueffling, HOG is a good option to consider.

Companhia Bebidas (ABV): ABV is a 5.21% of the US long portfolio stake first established in 2010. The position was increased by 50% last quarter at prices between $33 and $44. The stake was further increased by ~52% this quarter at prices between $34 and $39. The stock currently trades at around $37. The consistent stake increase indicates a clear bullish bias. For investors attempting to follow Mueffling, ABV is a good option to consider.

Fidelity National Information Services (NYSE:FIS): FIS was a minute 0.20% of the US long portfolio position established in Q1 2013. Last quarter, the position was increased to a large 6.11% of the US long portfolio position at prices between $39 and $46. This quarter saw a 15% stake increase at prices between $42.50 and $47.50. The stock currently trades outside that range at around $49. The consistent stake increase indicates a clear bullish bias.

Altera Corporation (NASDAQ:ALTR): ALTR is a fairly large 6.42% of the US long portfolio stake first purchased in 2011. The position was almost doubled in Q1 2013 at prices between $33 and $36.50. This quarter saw a 25% increase in the position size at prices between $33 and $39. The stock currently trades near the low-end of those ranges at around $33. For investors attempting to follow Mueffling, ALTR is a very good option to consider.

Brinks Corporation (NYSE:BCO): BCO is a 2.71% of the US long portfolio stake first established in 2012. The position was increased by ~20% this quarter at prices between $25.50 and $28.50. The stock currently trades at around $31.70.

The spreadsheet below highlights changes to Mueffling's US stock holdings in Q3 2013:

(click to enlarge)

Source: Tracking William Von Mueffling's Cantillon Capital Management Portfolio - Q3 2013 Update