10 Stocks to Buy According to William Von Mueffling’s Cantillon Capital Management

Published July 28, 2022 at 8:53 am EDT Updated August 19, 2026 at 8:07 am EDT

In this article, we discuss 10 stocks to buy according to William Von Mueffling’s Cantillon Capital Management.

Cantillon Capital Management is situated in New York. William Alexander Von Mueffling founded the hedge fund in 2003 and is the CEO and CIO. He began working for Deutsche Bank in Germany and France after receiving his MBA from Columbia in 1995. Before starting Cantillon Capital Management, Mueffling oversaw the hedge fund division at Lazard Asset Management, where he is credited with generating profits on average of over 30% per year by shorting technology stocks from 1998 to 2003.

When Mueffling founded Cantillon Capital Management, he employed a conventional long/short strategy. However, the hedge fund announced in June 2009 that it was ending its long/short strategy. Even though Mueffling outperformed many other hedge funds, his gains were still modest when measured in terms of absolute returns. Through May 2009, they had a decline of 7-8%. By June, he decided to refund cash to investors from the Cantillon World and Cantillon Europe divisions.

Cantillon Capital Management’s strategy, according to a 2010 Wall Street Journal article, is to hunt for companies that offer above-average returns on shareholder equity but are valued fairly relative to their revenue streams. In an interview in Graham & Doddsville, the Columbia Business School newsletter, Von Mueffling said:

“One can broadly divide value investing into two camps. The first camp is the Graham & Dodd style which is buying assets at a discount or cash at a discount. The second camp is the Buffett style, which I characterize as buying financial productivity at a discount. We fall into the second camp. We believe that there are many different types of moats to be found, and that a moat around a business should allow it to produce outsized margins and wonderful returns on capital. The trick is being able to buy this stream of cash flows at a discount. Unlike Graham & Dodd investing where you might look at low price-to-book value companies or net-net companies, we are trying to buy high financial productivity at a discount to its intrinsic value.”

Cantillon Capital Management’s 13F portfolio value decreased in the first quarter from $15.14 billion to $14.01 billion, with a top 10 holdings concentration of 41.82%. It allocated the most significant portion of its portfolio, comprising about 25.36%, to the information technology sector in the first quarter of 2022. The hedge fund also invested in the finance, healthcare, communications, consumer discretionary, industrials, real estate, and materials industries. Some of the fund’s well-known investments included Microsoft Corporation (NASDAQ:MSFT), Meta Platforms, Inc. (NASDAQ:META), and Alphabet Inc. (NASDAQ:GOOG).

10 Stocks to Buy According to William von Mueffling's Cantillon Capital Management

William Von Mueffling of Cantillon Capital Management

Our Methodology

In this article, we discuss 10 stocks to buy according to William von Mueffling’s Cantillon Capital Management. We used the hedge fund’s Q1 2022 portfolio to assess its top 10 holdings.

Stocks to Buy According to William von Mueffling’s Cantillon Capital Management

10. Applied Materials, Inc. (NASDAQ:AMAT)

Cantillon Capital Management’s Stake Value: $462,859,000

Percentage of Cantillon Capital Management’s Portfolio: 3.3%

Number of Hedge Fund Holders: 74

Applied Materials, Inc. (NASDAQ:AMAT) supplies production equipment, services, and software to the semiconductor, display, and related industries. William von Mueffling’s Cantillon Capital Management has kept a stake in Applied Materials, Inc. since Q1 2020. The hedge fund’s $462.86 million investment equals 3.3% of the total portfolio.

On July 18, analyst Sidney Ho from Deutsche Bank retained a Buy recommendation on Applied Materials, Inc., decreasing his price objective from $135 to $110. Ho advised investors in a research note that the extent of the wafer fab equipment decrease is the primary cause of dispute among investors and that there are further signs that the market for WFE will fade in 2023.

Investors were recently seen selling Applied Materials, Inc. shares. At the close of the first quarter, 74 hedge funds were bullish on the company shares, compared to 78 in the previous quarter. The combined worth of Q1 hedge fund holdings stood at $4.30 billion. David Blood and Al Gore’s Generation Investment Management owned a $560.98 million stake in Applied Materials, Inc. at the end of the first quarter, making it the company’s largest shareholder.

In addition to Applied Materials, Inc., Microsoft Corporation, Meta Platforms, Inc., and Alphabet Inc. (NASDAQ:GOOG.C) are some other major holdings of William von Mueffling’s Cantillon Capital Management.

In its Q4 2021 investor letter, Vulcan Value Partners mentioned Applied Materials, Inc.. Here is what the firm had to say:

“Applied Materials, another material contributor for the quarter, provides materials engineering solutions for semiconductor fabrication equipment and manufacturing tools for advanced displays. Similar to Lam Research, Applied Materials is executing well and continuing to experience the tailwinds from consolidation and growth within the industry.”

9. American Tower Corporation (NYSE:AMT)

Cantillon Capital Management’s Stake Value: $465,397,000

Percentage of Cantillon Capital Management’s Portfolio: 3.32%

Number of Hedge Fund Holders: 50

With a portfolio of almost 219,000 properties, American Tower Corporation (NYSE:AMT), one of the most significant worldwide REITs, is a premier independent owner, operator, and developer of multi-tenant communications real estate.

In light of the Q2 results, Citi analyst Michael Rollins reiterated a Buy rating on the shares of American Tower Corporation but cut his price objective from $300 to $290 on July 17. The analyst predicted that the company’s organic growth would remain positive and viewed the decision to raise less money as a positive indication of its underlying organic financial performance.

According to the 13F filings for the first quarter of 2022, Cantillon Capital Management held over 1.85 million shares of American Tower Corporation, amounting to more than $465.40 million and representing 3.32% of the fund’s portfolio value.

50 hedge funds reported bullish bets on American Tower Corporation at the end of the first quarter, with combined stakes worth $4.10 billion. With about 7 million shares valued at $1.76 billion, Akre Capital Management is the biggest shareholder of American Tower Corporation.

In its second-quarter 2022 investor letter, Richie Capital Group mentioned American Tower Corporation and explained its insights for the company. Here is what the fund said:

“The portfolio positions that increased during the quarter likely did so because of the sectors in which they are categorized as opposed to any company specific news. American Tower is one of the largest global REITs. The company owns and operates multi-tenant cell towers globally. Our long tenured investment is based on their impenetrable business model and the long tail of the current 5G investment cycle that will extend over the next decade. Carriers are in the early stages of upgrading their cell sites with new equipment to provide contiguous 5G coverage globally. Additionally, since 5G technology requires increased cell site density, cellular carriers will need to invest extensively to ensure strong performance across their networks.”

8. Equifax Inc. (NYSE:EFX)

Cantillon Capital Management’s Stake Value: $483,185,000

Percentage of Cantillon Capital Management’s Portfolio: 3.44%

Number of Hedge Fund Holders: 43

Equifax Inc. (NYSE:EFX) provides information solutions and business process outsourcing for organizations, governments, and customers. After Equifax Inc.’s Q2 earnings beat and revised FY22 forecast, Truist analyst Andrew Jeffrey dropped his price objective on Equifax Inc. from $250 to $230 on July 22. However, he reiterated a Buy rating on the shares.

On July 20, Equifax Inc. published earnings for the second quarter, announcing earnings per share of $2.09, beating estimates by $0.07. In addition, the $1.32 billion revenue for the period was up 7.3% year-over-year, in line with the forecast. With 4.41 million shares valued at $1.05 billion, Generation Investment Management is the top shareholder of Equifax Inc..

Cantillon Capital Management bought 57,617 shares of Equifax Inc. in the first quarter, increasing its stake by about 3%. At the end of the quarter, the hedge fund held 2.04 million shares of Equifax Inc., worth about $483.19 million. As of the end of the first quarter, 43 hedge funds owned stakes in Equifax Inc., with a combined value of $3.10 billion. This is in contrast to 41 hedge funds a quarter ago.

Baron Funds mentioned Equifax Inc. in its Q1 2022 investor letter. Here is what the fund said:

“We initiated a position in Equifax Inc., a leading consumer credit bureau and information services company. It collects and manages large databases of consumer data, such as credit, employment, and income records. Equifax uses these assets to provide data and analytics services to businesses and governments to make credit and marketing decisions. Credit bureaus have numerous competitive advantages, including economies of scale, regulatory barriers, and high switching costs as customers rely on their mission-critical solutions. Following a data breach in 2017, the senior management team was replaced and over $1.5 billion was spent on modernizing Equifax’s technology infrastructure and migrating it to the cloud. In addition to strengthening the company’s cyber defenses, we believe this technology transformation will enable a faster pace of product innovation and drive higher organic growth.

Unique to Equifax is its Workforce Solutions business, which maintains a database of employment and income records sourced from employers and payroll processors. Equifax has over 136 million active records representing over 60% of U.S. non-farm payrolls. Businesses and government agencies use this data for employment and income verification, which is needed when someone applies for a mortgage, requests government benefits, or changes jobs. We believe Equifax has by far the largest repository of this valuable data and continues to add new records at a faster pace than competitors. With durable growth coming from new product innovation and its Workforce Solutions business, we believe that Equifax is a high-quality business that is well positioned to grow earnings per share at a mid-teens rate over a multi-year period.”

7. Thermo Fisher Scientific Inc. (NYSE:TMO)

Cantillon Capital Management’s Stake Value: $509,673,000

Percentage of Cantillon Capital Management’s Portfolio: 3.63%

Number of Hedge Fund Holders: 101

Cantillon Capital Management also strengthened its position in Thermo Fisher Scientific Inc. (NYSE:TMO) by buying 24,611 additional shares. This made its stake in Thermo Fisher Scientific Inc. total 862,901 shares worth $509.67 million.

Thermo Fisher Scientific Inc. provides laboratory goods and services, analytical tools, specialized diagnostics, and life sciences solutions globally. Thermo Fisher Scientific Inc. is a good option for income investors as the firm has been paying dividends consistently since 2012. On May 19, Thermo Fisher Scientific Inc. issued a quarterly dividend of $0.30 per share, in line with the previous.

On July 13, Barclays analyst Luke Sergott reaffirmed an Overweight rating on Thermo Fisher Scientific Inc. while lowering his price objective from $675 to $630. Although Sergott told investors in a research report that instrument firms are well equipped for recessionary and inflationary pressures, should they persist, the life science sector is nonetheless suffering from macro pessimism.

Investors were seen loading up on Thermo Fisher Scientific Inc. shares at the end of the first quarter, where 101 hedge funds were bullish on the company shares, in contrast to 95 hedge funds a quarter earlier. Fisher Asset Management is the most prominent shareholder of Thermo Fisher Scientific Inc., with 2.26 million shares valued at $1.33 billion.

ClearBridge Investments mentioned Thermo Fisher Scientific Inc. in its Q1 2022 investor letter. Here is what the firm said:

“Improving health remains a key impact theme for the portfolio, and over the past year or so we have increased our exposure to the health care sector, through the addition of Thermo Fisher Scientific, a leading health care tools company, a leading provider of fertility benefit management services to self-insured employers that offers a rare win-win-win for employers, employees, health systems, and doctors, with clear savings and quality improvements.”

6. Visa Inc. (NYSE:V)

Cantillon Capital Management’s Stake Value: $512,837,000

Percentage of Cantillon Capital Management’s Portfolio: 3.66%

Number of Hedge Fund Holders: 159

Visa Inc. (NYSE:V) is a leading supplier of payment systems worldwide. The company facilitates electronic payments between consumers, merchants, banks, businesses, alliance partners, and government agencies. 159 hedge funds held stakes in Visa Inc. at the close of the first quarter, up from 142 hedge funds a quarter earlier. Overall, the total value of hedge fund investments in Q1 was $28.08 billion.

TCI Fund Management is the leading shareholder of Visa Inc., with 19.92 million shares of Visa Inc., worth over $4.42 billion. Next on the list is Fisher Asset Management, which owned 13.28 million shares of Visa Inc., worth over $2.94 billion.

On July 20, Wolfe Research analyst Darrin Peller revised his forecasts, ratings, and price targets ahead of the Q2 earnings season. He dropped his price objective on Visa Inc. from $285 to $260 while maintaining an Outperform rating on the stock. For the Payments, Manufacturers, and IT Services sector, Peller’s base case modelling estimate changed to a moderate recession in 2023.

In the first quarter, Cantillon Capital Management increased its stake in Visa Inc. by 3%, and its position is now worth about $512.84 million. Visa Inc. has featured on Cantillon Capital Management’s portfolio since the fourth quarter of 2015.

Just like Microsoft Corporation, Meta Platforms, Inc., and Alphabet Inc., Visa Inc. is one of the stocks to buy according to William von Mueffling’s Cantillon Capital Management.

Baron Funds mentioned Visa Inc. in its Q1 2022 investor letter. Here is what the firm has to say:

“Shares of global payment network Visa, Inc. were up 2.5% on strong quarterly results with 24% revenue growth and 27% EPS growth. Payment volume grew 20% with notable strength in cross-border volumes as travel activity rebounded from depressed levels. Management raised full-year guidance to reflect high-teens revenue growth. Shares also likely benefited from a “flight to safety” during a volatile quarter for equities. We continue to own the stock due to Visa’s long runway for growth underpinned by the continued migration from cash transactions to card/digital and strong competitive advantages, operating in a duopoly with Mastercard.”

5. Intercontinental Exchange, Inc. (NYSE:ICE)

Cantillon Capital Management’s Stake Value: $523,170,000
Percentage of Cantillon Capital Management’s Portfolio: 3.73%
Number of Hedge Fund Holders: 60

Together with its subsidiaries, Intercontinental Exchange, Inc. (NYSE:ICE) runs regulated exchanges, clearing houses, and listings venues for the commodities, financial, fixed income, and equities markets in the US, UK, EU, Singapore, Israel, and Canada. On July 21, Intercontinental Exchange acquired climate risk analytics company Urgentem, expanding its service for climate risk.

Securities filings reveal that Cantillon Capital Management inched up its position in Intercontinental Exchange by 3% during the first quarter of 2022. With a $523.17 million stake, Cantillon Capital Management is the leading shareholder of Intercontinental Exchange, Inc..

On July 13, Deutsche Bank analyst Brian Bedell maintained a Buy rating on Intercontinental Exchange, Inc., while trimming his price objective from $117 to $114. The analyst revised his macroeconomic forecasts, price objectives, and assumptions for the broker and asset management group, and he perceived a negative bias.

Out of the 912 hedge funds in the database of Insider Monkey, 60 owned long positions in Intercontinental Exchange, Inc. at the end of the first quarter of 2022, with a combined value of $2.77 billion.

Here is what Oakmark Funds has to say about Intercontinental Exchange, Inc. in its Q2 2021 investor letter:

“Intercontinental Exchange is one of the largest and, in our view, most successful financial exchange operators in the world. The company was created through a series of shrewd acquisitions executed by their founder and CEO Jeff Sprecher. Sprecher is one of the more capable CEOs we’ve evaluated, having demonstrated a long history of astute capital allocation and a willingness to act and adapt rapidly to new opportunities and competitive threats. Today, Intercontinental Exchange competes in three primary business segments: exchanges, fixed income/data services and mortgage technology. We believe each of these businesses exhibits attractive economic characteristics and that each should grow earnings well in excess of GDP over the long term. Despite this favorable long-term outlook, the company currently trades at a P/E ratio that is roughly in line with the S&P 500. We believe a business with Intercontinental Exchange’s strong competitive position, excellent management team and attractive growth outlook deserves to trade well above a market multiple. We like buying great businesses at average prices and believe Intercontinental Exchange represents a compelling opportunity to do just that.”

4. Analog Devices, Inc. (NASDAQ:ADI)

Cantillon Capital Management’s Stake Value: $538,597,000
Percentage of Cantillon Capital Management’s Portfolio: 3.84%
Number of Hedge Fund Holders: 67

Analog Devices, Inc. (NASDAQ:ADI) creates, produces, tests, and sells integrated circuits (ICs), software, and subsystems that use mixed-signal, analog, and digital signal processing techniques. Cantillon Capital Management elevated its position in Analog Devices, Inc. by 3% in Q1 2022, holding more than 3.26 million shares equalling $538.60 million. The stock accounted for 3.84% of the fund’s total 13F portfolio.

Given the continuing uncertainty surrounding the semiconductor cycle, Ross Seymore, an analyst at Deutsche Bank, decreased his price objective for Analog Devices, Inc. from $185 to $165 on July 20 and maintained a Hold rating.

67 hedge funds from the Q1 database of Insider Monkey reported bullish bets on Analog Devices, Inc., with combined stakes totalling $4.81 billion. With 3.73 million shares valued at $615.90 million, Egerton Capital Limited is the top shareholder of Analog Devices, Inc..

In its Q3 2021 investor letter, Madison Funds mentioned Analog Devices, Inc.. Here is what the fund said:

“At its 2017 investor day, Analog Device’s VP of Automotive, Mark Gill, described how the company’s content on well-equipped electric vehicles was $600 per car compared to $250 per car for the traditional 2017 internal combustion engine car. Since then, Analog has highlighted the success of its EV battery management systems (BMS) product nearly every quarter. The BMS product is hardware and software that manages the power into and out of the battery systems. It’s the brains of the operation. Analog says it’s on its fifth generation BMS product, that it has the no. 1 market share in high voltage products, and that it is on 5 of the top 10 selling EVs. While we think that the BMS product is just 1 to 1.5% of Analog’s product mix, we think that it could add nearly a point of revenue growth per year to the company’s top-line given the expected ramp in EV production. This is a material amount of growth atop an already nicely growing company revenue line.”

3. Broadcom Inc. (NASDAQ:AVGO)

Cantillon Capital Management’s Stake Value: $652,180,000
Percentage of Cantillon Capital Management’s Portfolio: 4.65%
Number of Hedge Fund Holders: 71

Broadcom Inc. (NASDAQ:AVGO) is a semiconductor device designer, developer, and supplier specializing in analog III-V-based products and complicated digital and mixed signal semiconductor devices. Ken Fisher’s Fisher Asset Management held the most significant stake in Broadcom Inc. at the end of the Q1 2022, valued at $894.78 million.

On July 20, Ross Seymore, an analyst at Deutsche Bank, reduced his price objective for Broadcom Inc. from $700 to $635 to reflect the semiconductor cycle’s current limbo stage. However, he maintained a Buy rating on the shares.

Cantillon Capital Management held 1.04 million shares of Broadcom Inc., worth over $652.18 million. This represented 4.65% of its portfolio. The hedge fund’s stake in Broadcom Inc. stock increased by 3% in Q1 2022.

Of the 900+ hedge funds tracked by Insider Monkey, 71 reported ownership of positions in Broadcom Inc. at the close of the first quarter, with a collective stake value of $5.49 billion. In contrast, 62 hedge funds owned stakes in Broadcom Inc. a quarter ago.

Here’s what ClearBridge Investments said about Broadcom Inc. in its Q4 2021 investor letter:

“However, ClearBridge portfolio companies are responding by supporting their workforces and showing resilience in adapting and thriving. Semiconductor companies ClearBridge owns and engages with have been successful in advancing vaccinations in their global supply chains. In Malaysia, for example, Broadcom has taken part in PIKAS, a public-private partnership vaccination program focusing on the workforce in critical manufacturing sectors. By the summer of 2021 Broadcom was able to get over 90% of workers in its Penang factory at least one dose of vaccine, and roughly 73% fully vaccinated. Companies in the program also pay the administration cost for vaccinations including cases where the employee is no longer employed by the company before full immunization of the employee.”

2. Alphabet Inc. (NASDAQ:GOOG.A)

Cantillon Capital Management’s Stake Value: $830,542,000
Percentage of Cantillon Capital Management’s Portfolio: 5.93%
Number of Hedge Fund Holders: 205

Alphabet Inc. (NASDAQ:GOOG.A) is an international technology firm. It functions through the categories of Google Services, Google Cloud, and Other Bets. On July 22, Mizuho analyst James Lee maintained a Buy rating while lowering his price objective for Alphabet Inc. from $175 to $150. He projected Alphabet to be more resilient than competitors, given its extensive advertisement base, which includes offline and services income.

Cantillon Capital Management owned 298,611 shares of Alphabet Inc., worth over $830.54 million, representing 5.93% of its investment portfolio. Cantillon Capital Management increased activity in Alphabet Inc.’s stock by 3% in the first quarter of 2022.

205 hedge funds were long Alphabet Inc. at the end of the first quarter of 2022, as compared to 209 hedge funds in the previous quarter. Chris Hohn’s TCI Fund Management is Alphabet Inc.’s most significant stakeholder, with 2.37 million shares worth $6.62 billion.

In its Q2 2022 investor letter, Oakmark Funds mentioned Alphabet Inc.. Here is what the fund said:

“Alphabet, a global communication services provider, was a top detractor to the Fund’s performance for the quarter. Investors were disappointed by the company’s first-quarter earnings report, though its results were largely in line with analysts’ expectations, including 23% revenue growth to $68 billion and a total operating margin of 30%. Search revenue improved 28% in constant currency, led by retail and the ongoing recovery in travel. Although YouTube’s brand advertising was strong, segment revenue decelerated due to difficult comparable sales and the adverse effects of the Russia/Ukraine war. However, share repurchases for the first quarter amounted to $13.3 billion and were tracking in line with our full-year estimate, and the company authorized an additional $70 billion for buybacks, adding to our confidence in management’s commitment to adding value for its shareholders. While an industry-wide trend of slowing advertising revenues persisted in the second quarter, we believe Alphabet’s total advertising business is still positioned to grow in the mid-teens in 2022 and that the stock remains an attractive holding.”

1. S&P Global Inc. (NYSE:SPGI)

Cantillon Capital Management’s Stake Value: $879,110,000
Percentage of Cantillon Capital Management’s Portfolio: 6.27%
Number of Hedge Fund Holders: 97

S&P Global Inc. and its subsidiaries offer credit ratings, benchmarks, analytics, and workflow solutions for the global finance, commodities, and auto markets. Chris Hohn’s TCI Fund Management is the biggest stakeholder of S&P Global Inc., boosting its stake in the company by 83% in Q1, holding 6.82 million shares worth almost $2.80 billion.

On July 12, Raymond James analyst Patrick O’Shaughnessy maintained an Outperform rating on the shares while reducing his price objective on S&P Global Inc. to $417 from $462. O’Shaughnessy warned investors in a research note that prolonged equities market falls will impact the Indices segment revenue.

S&P Global Inc. topped the list of 10 stocks to buy according to William von Mueffling’s Cantillon Capital Management. Mueffling began building his stake in S&P Global Inc. back in the second quarter of 2016. After buying 58,703 shares of S&P Global Inc. stock in the first quarter of 2022, the hedge fund held 2.14 million shares worth about $879.11 million.

According to Insider Monkey’s database of 912 funds, 97 were long S&P Global Inc., with a total stake value of $9.91 billion at the end of the first quarter of 2022, up from 79 funds having stakes equaling $7.83 billion in the last quarter.

Here is what Cooper Investors, an investment firm, had to say about S&P Global Inc. in its Q1 2022 investor letter:

“This quarter, S&P Global announced the successful completion of its acquisition of IHS Markit. The deal makes S&P a global leader across the information services industry. The Fund has been long term shareholders of S&P, building a position back in 2015 when the organisation was still named McGraw-Hill Financial. We saw the initial opportunity as it refocused the business from a publishing and financial conglomerate towards its core data and financial assets. S&P’s credit ratings, benchmarks and analytics businesses in global capital and commodity markets carry leading positions, defensible offerings, consistent growth and high margins – as true today as it was seven years ago. With the increased focus management have applied over a lengthy period we see improved revenue growth, margins and cash flows…” (Click here to see the full text)

You can also take a peek at 10 Stocks to Buy According to Carlson Capital and 10 Stocks to Buy According to Stephen DuBois’ Camber Capital Management

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