In this article, we discuss the top 5 stock picks of William Von Mueffling’s Cantillon Capital Management. If you want to read our detailed analysis of Mueffling’s history, investment philosophy, and hedge fund performance, go directly to Top 10 Stock Picks of William Von Mueffling’s Cantillon Capital Management.
5. American Tower Corporation (NYSE:AMT)
Cantillon Capital Management’s Stake Value: $471,366,000
Percentage of Cantillon Capital Management’s 13F Portfolio: 3.93%
Number of Hedge Fund Holders: 52
American Tower Corporation (NYSE:AMT) is a prominent independent multi-tenant communications real estate owner, operator, and developer. More than 220,000 cell towers are owned and operated by American Tower Corporation (NYSE:AMT) in the United States, Asia, Latin America, Europe, and Africa. Following the acquisition of CoreSite, it also owns and runs 25 data centers in eight U.S. markets.
American Tower Corporation (NYSE:AMT) has a strong dividend history. Since 2012, the corporation has increased its dividend each year. On September 22, American Tower (NYSE:AMT) announced a quarterly dividend of $1.47 per share, a 2.8% increase over the previous payout of $1.43.
On October 3, KeyBanc analyst Brandon Nispel reduced his price objective on American Tower Corporation (NYSE:AMT) from $300 to $264 and maintained an ‘Overweight’ rating on the stock. The analyst predicted that all towers would likely fall short of 2023 adjusted funds from operations estimates due to rising interest rates.
Akre Capital Management is a prominent stakeholder of American Tower Corporation (NYSE:AMT), with 6.97 million shares of the company, worth over $1.78 billion. Insider Monkey found 52 hedge funds bullish on American Tower Corporation (NYSE:AMT) at the close of the second quarter of 2022. Those funds held collective stakes in the company valued at $4.37 billion, up from $4.10 billion in the first quarter of 2022, when 50 hedge funds were long AMT shares.
Here is what Baron Funds had to say about American Tower Corporation (NYSE:AMT) in its Q2 2022 investor letter:
“American Tower is a leading global tower company with 220,000 communication sites globally and over 40,000 in the U.S. We added to our position during the market dislocation and as it became increasingly clear that the company would put permanent equity financing in place at better-than-expected terms for its previously announced acquisition of CoreSite (thereby removing the “equity overhang”).
In addition, the company stepped back from a large potential deal in Europe, which would have required significant incremental funding, due to unfavorable contract terms and price. This decision further reinforced our confidence in management’s capital allocation discipline knowing that these were highly sought-after assets.”
