09. FTI Consulting, Inc. (NYSE:FCN)
Number of Hedge Fund Holders: 25
FTI Consulting, Inc. (NYSE:FCN), based in Washington, D.C., provides business advisory services globally. It operates through five segments: Corporate Finance & Restructuring, Forensic and Litigation Consulting, Economic Consulting, Technology, and Strategic Communications. The company serves various sectors, including aerospace, finance, healthcare, and technology, offering services in business transformation, disputes, economic consulting, e-discovery, and corporate communications. On June 25, FTI Consulting, Inc. (NYSE:FCN) launched a comprehensive digital offering that combines the firm’s industry expertise across various segments. This integrated approach leverages digital tools and technologies like machine learning, AI, and advanced data analytics to deliver tailored solutions for clients. By bridging individual segment expertise, FTI Consulting, Inc. (NYSE:FCN) aims to help clients address evolving risks and opportunities across emerging and established technologies.
In the first quarter of 2024, the number of hedge funds with stakes in FTI Consulting, Inc. (NYSE:FCN) increased to 25 from 18 in the previous quarter, according to Insider Monkey’s database. The combined value of these stakes is approximately $0.25 billion. Bruce Emery’s Greenvale Capital emerged as the largest stakeholder among these hedge funds during this period.
Upslope Capital Management made the following comment about FTI Consulting, Inc. (NYSE:FCN) in its second quarter 2023 investor letter:
“FTI Consulting, Inc. (NYSE:FCN) is a boutique consulting firm with expertise in restructuring, dispute, and other areas. Upslope first invested in FTI as a contrarian idea in Feb 2021 (“what’s more out of favor during a speculative bubble than a restructuring consultant?”). The stock is one of Upslope’s biggest contributors since inception, and until recently one of the portfolio’s largest longs. After disappointing 1Q results, however, I exited the position and ultimately initiated a modest short. Rationale for the abrupt change: (1) contrarian thesis has played out and no longer holds (opposite is true), (2) long-time CEO has suddenly started selling big chunks of stock for the first time ever (that I can tell), (3) shares recently hovered ~27x EPS – expensive and right where they peaked during the 2008-9 financial crisis. While the restructuring cycle may have more to go, I think FTI shares will see serious multiple compression, and (4) increasingly choppy performance: over the last four quarterly earnings reports, shares have moved -8%, +11%, -19%, -9%. This is not entirely management’s fault but it’s notable.”
