Cantillon Capital Management was founded in 2003. It’s based in New York and headed by William Alexander von Mueffling. Von Mueffling is the CEO, managing partner, and Chief Investment Officer at Cantillon. Before Cantillon, von Mueffling had a success story at Lazard Asset Management. Cantillon invests in value stocks and applies a bottom up stock picking approach.
Von Mueffling has had both short and long positions for years. However, at present, because of the policies of government about printing money, he thinks short positions are very risky. So nowadays, Cantillon prefers only long positions and collects the stocks that are expected to rise. Total equity investments in his latest 13F are about $1.4 Billion. Another important characteristic of Cantillon is that management fees are below the usual 2%.
According to the recently filled 13F forms, Cantillon didn’t add any stocks to its portfolio. They did, however, get rid of Autozone (AZO) and Avon Products (AVP). Here are the 10 largest stocks Cantillon is most bullish about at the end of December:
1) Willis Group (WSH): Cantillon had $175 million of Willis Group shares. Stock gained 7.8% and beat the SPY, which returned 3% since the 31st of December. Cantillon increased stock holdings of Willis 34% since the previous 13F forms were filled at the end of September.
2) Coca Cola (KO): Cantillon had almost $170 million of Coca-Cola shares. This investment lost 4.27% since the 31st of December. Cantillon increased stock holdings 34% since the end of the September. Warren Buffett benefited from Coca-Cola’s increase as well.
3) Banco Bradesco (BBD): William Alexander von Mueffling had $152 million in shares of Banco Bradesco. The stock lost 3.6% since the end of the December. Cantillon increased stock holdings 15% since the previous 13F forms were filled.
4) Oracle (ORCL): Cantillon returned 4.03% from its Oracle investment of $152 million. The position beat the SPY since the end of December. Cantillon increased the stock holdings of ORCL 16% since the previous 13F fillings. Lee Ainslie’s Maverick Capital and Tom Steyer’s Farallon Capital has large Oracle positions too.
5) Analog Devices (ADI): Analog Devices returned 3.24%, which is very close to market return. Cantillon had $139 million invested and the stock holdings increased 71% since the end of the September. David Tepper also started buying ADI during the third quarter.
6) Google (GOOG): Cantillon’s $128 million investment in Google returned 3.79% since the end of December. The stock holdings increased 15% since the end of the September. Jonathan Auerbach’s Hound Partners is a Google investor too.
7) Philip Morris Intl (PM): Philip Morris Intl. lost 1.71% since December. Cantillon invested $88 million. Stock holdings of PM increased 15% since September. PM is one of the high quality, high dividend stocks.
8) Colgate Palmolive (CL): Colgate Palmolive lost 0.66% since December 31st. Cantillon invested $78 million and the stock holdings increased 15% since September.
9) Credicorp (BAP): Cantillon’s $72 million investment lost 7.89% since the end of the December and the stock holdings increased 15% since September.
10) Solera Holdings (SLH): The Solera Holdings investment returned 3.12% since December, which is almost equal to the market return (SPY). The amount of investment is $64 million and stock holdings increased by 15% since the end of the September.
$100 invested in the 10 largest positions of Cantillon returned 0.87% since the end of the December, which is below the SPY return of 3%.