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Summary

  • William Von Mueffling's U.S. long portfolio increased marginally this quarter from $4.22B to $4.32B.
  • Cantillon Capital Management is bullish on Fidelity National Information Services, W.W. Grainger Inc., Willis Group Holdings, & Sirona Dental Systems.
  • Cantillon Capital Management is bearish on Coca-Cola and LKQ Corporation.

This article is part of a series that provides an ongoing analysis of the changes made to William Von Mueffling's U.S. stock portfolio on a quarterly basis. It is based on Mueffling's regulatory 13F Form filed on 05/09/2014. Please visit our Tracking Stocks In William Von Mueffling's Investment Funds series to get an idea of his investment philosophy and our previous update highlighting the fund's moves during Q4 2013.

This quarter, Mueffling's U.S. long portfolio increased marginally from $4.22B to $4.32B. The number of holdings in the portfolio increased from 19 to 20: a new position in Sirona Dental Systems was added, and none of the existing positions were eliminated. The portfolio continues to be heavily concentrated, with the top five holdings representing around 45% of the total U.S. long holdings. The largest position is Google (NASDAQ:GOOG), (NASDAQ:GOOGL), which was first established in 2010 and now accounts for 10.47% of the U.S. long portfolio. The largest five positions are Google Inc., Fidelity National Information Services (NYSE:FIS), Harley-Davidson Inc. (NYSE:HOG), Priceline Group Inc. (NASDAQ:PCLN), and Baidu Inc.(NASDAQ:BIDU).

Stake Disposals:

None.

New Stakes:

Sirona Dental Systems (NASDAQ:SIRO): SIRO is a 3.09% of the U.S. long portfolio position established this quarter at prices between $67 and $75. The stock currently trades at $74.70. The substantial stake establishment indicates a bullish bias.

Stake Decreases:

Baidu Inc. (BIDU): BIDU is Mueffling's fourth-largest position at 8.16% of the U.S. long portfolio. It was a ~5% position first-established in 2012. The stake was increased by over 30% in Q1 2013, at prices between $84 and $113, and another 30% in Q2 2013 at prices between $83 and $103. The position was marginally decreased in each of the last three quarters. The stock currently trades at around $153. 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.

Brink's Company (NYSE:BCO): BCO is 2.06% of the U.S. long portfolio stake first established in 2012. The position was increased by ~20% in Q3 2013 at prices between $25.50 and $28.50, and the stake saw minor trimming in the last two quarters. The stock currently trades at $25.25. For investors attempting to follow Mueffling, BCO is a good option to consider for further research.

Coca Cola (NYSE:KO): KO is a 3.03% position in the U.S. long portfolio position that was reduced by over 50% this quarter at prices between $37 and $41. The stock currently trades at $40.87. The original stake was a ~2.5M share position established in 2010 at prices between $25 and $33. The position was increased by 40% in 2011 and doubled in 2012. The large stake reduction this quarter indicates a clear bearish bias.

Colgate Palmolive (NYSE:CL): CL is a very long-term position which currently accounts for 2.70% of the U.S. long portfolio. In the beginning of 2013, it accounted for over 7% of the U.S. long portfolio. The stake was reduced by more than half in Q2 2013 at prices between $56 and $63 and was marginally reduced in the last three quarters. The stock currently trades at around $67.65. The activity indicates a bearish bias.

Credit Acceptance Corporation (NASDAQ:CACC): CACC was a ~1% of the U.S. long portfolio position established in 2012. The stake was increased by around 50% in Q2 2013 at prices between $96 and $122. The position has since been kept relatively steady; last quarter saw a minor stake increase, while this quarter saw marginal trimming. The stock currently trades at around $131. The activity does not indicate a clear bias.

Harley Davidson: HOG is a large 8.41% of the U.S. long portfolio position that was established in Q2 2013 at prices between $50 and $60. The stake was increased by 56% in Q3 2013 at prices between $54 and $65. The stock currently trades well above the top-end of those ranges at $72.12. The position saw minor trimming in the last two quarters, but is currently his third largest position after Google and Fidelity National Information Services.

LKQ Corporation (NASDAQ:LKQ): LKQ is a 2.63% position in the U.S. long portfolio position that was reduced by ~24% in Q3 2013 at prices between $25.50 and $32. The stock currently trades at $28.78. The position was first purchased in 2012 and was substantially increased in Q1 2013 at prices between $20 and $24. The stake was reduced marginally last quarter. This quarter saw a ~22% stake reduction at prices between $24.77 and $32.90. The activity indicates a mild bearish bias.

Altera Corporation (NASDAQ:ALTR): ALTR is a 4.71% position in the U.S. long portfolio stake first purchased in 2011. The position was almost doubled in Q1 2013 at prices between $33 and $36.50. Q3 2013 saw a 25% stake increase at prices between $33 and $39. The last two quarters saw minor trimming. The stock currently trades near the low-end of his purchase prices ranges at around $32.38. For investors attempting to follow Mueffling, ALTR is a very good option to consider.

The following positions were marginally reduced this quarter: Analog Devices (NASDAQ:ADI) at 8.01%, Ecolab (NYSE:ECL) at 6.35%, Google Inc. at 10.47%, Priceline Inc. at 8.26%, Solera Holdings (NYSE:SLH) at 2.53%, and Waters Corporation (NYSE:WSH) at 0.35%. The minor activity does not indicate a change in bias.

Stake Increases:

Fidelity National Information Services: FIS was a minute 0.20% of the U.S. long portfolio position established in Q1 2013. In Q2 2013, the position was increased to a large 6.11% of the U.S. long portfolio position at prices between $39 and $46. Q3 2013 saw a 15% stake increase at prices between $42.50 and $47.50. This quarter, the position was increased by 44% at prices between $48.87 and $56.55. The stock currently trades at $53.75 and is Mueffling's second-largest position at 9.58% of the U.S. long portfolio.

Ambev SA (NYSE:ABEV): ABEV is a 3.87% of the U.S. 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. This quarter saw a one-third stake increase at prices between $6.23 and $7.45. The stock currently trades at $7.39. Mueffling is bullish on ABEV.

Grainger W. W. (NYSE:GWW): GWW was a 2.35% of the U.S. long portfolio stake established in Q3 2013 at prices between $247 and $274. The position was almost doubled last quarter at prices between $248 and $272 and increased by another 50% this quarter at prices between $229 and $266. The stake currently accounts for 5.94% of the U.S. long portfolio. The stock is trading near the low-end of Mueffling's purchase price ranges at $251. For investors attempting to follow him, GWW is a very good option to consider for further research.

Willis Group Holdings : WSH was a 2.41% of the U.S. long portfolio stake established in Q3 2013 at prices between $40.50 and $45. The position was increased by ~78% last quarter at prices between $42 and $46.50 and another one-third this quarter at prices between $41 and $45. The stake currently accounts for 5.11% of the U.S. long portfolio. The stock is trading near the low-end of Mueffling's purchase price ranges at $41.59 and so is a good option to consider when following him.

MSC Industrial Direct Inc. (NYSE:MSM): MSM is a 1.94% of the U.S. long portfolio position established last quarter at prices between $75.50 and $83.50. This quarter saw an 84% stake increase at prices between $80 and $89. The stock currently trades at $89.81.

Kept Steady:

None.

The spreadsheet below highlights changes to Mueffling's U.S. stock holdings in Q1 2014:

(click to enlarge)

Disclosure: I 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.