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

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. (NASDAQ:GOOG) 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. (NASDAQ:GOOG.A), worth over $830.54 million, representing 5.93% of its investment portfolio. Cantillon Capital Management increased activity in Alphabet Inc. (NASDAQ:GOOG.A)’s stock by 3% in the first quarter of 2022.

205 hedge funds were long Alphabet Inc. (NASDAQ:GOOG) 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. (NASDAQ:GOOG.A)’s most significant stakeholder, with 2.37 million shares worth $6.62 billion.

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

“Alphabet (NASDAQ:GOOG), 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.”