Cantillon Capital Management, managed by William Von Mueffling, recently filed a 13F with the U.S. Securities and Exchange Commission. The fund reported 38 investments, worth $4.3 billion for the second quarter of 2014. During the quarter, the fund focused on technology, services, and consumer stocks. Cantillon Capital’s top three tech picks for the second quarter include Baidu Inc (ADR) (NASDAQ:BIDU), Analog Devices, Inc. (NASDAQ:ADI), and Google Inc (NASDAQ:GOOGL). In this article, we will discuss each of these stocks.
On the top position is Baidu Inc (ADR) (NASDAQ:BIDU), in which the fund slightly upped its stake to 2.32 million shares, worth $432.8 million, from 2.31 million shares held previously. With a market cap of $78.7 billion, Baidu Inc (ADR) (NASDAQ:BIDU) is a Chinese Internet search provider, which reported more than 50% increase in its second-quarter 2014 total revenues to $1.9 billion, compared to the same quarter of 2013.
Stephen Mandel’s Lone Pine Capital, in its recent 13F, reported owning 8.9 million shares of Baidu Inc (ADR) (NASDAQ:BIDU). Another hedge fund, Viking Global, led by Andreas Halvorsen, revealed ownership of 4.68 million shares of the company.
Analog Devices, Inc. (NASDAQ:ADI) is represented as the second top pick for the quarter, where Cantillon Capital holds 6.62 million shares, with a reported value of $357.8 million. Analog Devices, Inc. (NASDAQ:ADI) manufactures a range of analog, mixed-signal and digital signal processing integrated circuits (ICs), and has a market cap of $15.8 billion.
At the end of July, Analog Devices, Inc. (NASDAQ:ADI) announced that it acquired Hittite Microwave Corp. in an all-cash transaction at a total value of approximately $2 billion, according to a press release.
Google Inc (NASDAQ:GOOGL) is on the third position, with Cantillon Capital disclosing ownership of 516,406 shares, up by approximately 28% over the quarter. The holding is valued at $301.9 million.
Amazon.com, Inc. (NASDAQ:AMZN) and more recently Google Inc (NASDAQ:GOOGL) have taken up on a challenge to deliver products purchased online to the customer’s door in around thirty minutes or even less with the help of drones. This development could be a turning point in the delivery business and possibly posing a serious threat to traditional retailers.
Other hedge funds betting big on Google Inc (NASDAQ:GOOGL) include Lansdowne Partners, which holds 856,958 shares, and Eagle Capital Management, led by Boykin Curry, which owns 791,934 shares of the company.
William von Mueffling is the president and CEO of Cantillon Capital Management. Ge graduated from Columbia with an MBA in 1995. After that, he worked for Deutsche Bank in Germany and France, and later – at Lazard Asset Management, where he ultimately became a managing director responsible for hedge funds. William von Mueffling founded found Cantillon Capital in 2003.
Disclosure: none
