Is the Interpublic Group of Companies (IPG) a worthy equity investment?

Oakmark Funds, an investment management firm, has released its third quarter 2021 “Oakmark Global Fund” letter to investors – a copy of which can be found seen here. A return of -3.33% was recorded by the fund in the third quarter of 2021, which compares to a slight loss for the MSCI World index and to -1.1% for the Lipper Global Fund index. You can check out the top 5 holdings in the fund to get a feel for their top picks for 2021.

Oakmark Fund, in its letter to investors for the third quarter of 2021, mentioned The Interpublic Group of Companies, Inc. (NYSE: IPG) and discussed his position on the company. The Interpublic Group of Companies, Inc. is a New York-based advertising company with a market capitalization of $ 14.3 billion. IPG has generated a return of 54.85% year-to-date, while its 12-month returns are up 72.69%. The action closed at $ 36.42 per share on November 5, 2021.

Here’s what Oakmark Funds says about The inter-public group of companies, Inc. in his letter to investors Q3 2021:

Interpublic is the fifth largest American advertising agency. Management has spent the past few years reorienting the company towards a digital marketing future, and those efforts are now paying off with market share gains and improved profit margins. “

Meeting

Based on our calculations, Interpublic Group of Companies, Inc. (NYSE: IPG) failed to land a spot on our list of 30 most popular stocks among hedge funds. IPG was listed in 31 hedge fund portfolios at the end of the first half of 2021, up from 29 funds in the previous quarter. Interpublic Group of Companies, Inc. (NYSE: IPG) generated a return of 0.11% over the past 3 months.

The reputation of hedge funds as savvy investors has been tarnished over the past decade, as their hedged returns could not keep up with the unhedged returns of stock indices. Our research has shown that small-cap hedge fund stock selection managed to beat the market by double digits every year between 1999 and 2016, but the margin for outperformance has shrunk in recent years. Nonetheless, we were still able to identify in advance a select group of hedge funds that have outperformed S&P 500 ETFs by 115 percentage points since March 2017 (see details here). We were also able to identify in advance a select group of hedge funds that underperformed the market by 10 percentage points per year between 2006 and 2017. Interestingly, the margin of underperformance of these stocks has increased in recent years. Investors who are long in the market and short on these stocks would have reported more than 27% per year between 2015 and 2017. We have been tracking and sharing the list of these stocks since February 2017 in our quarterly newsletter.

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Disclosure: none. This article was originally published on Monkey initiate.


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