Fiduciary Management Inc. (FMI), an independent money management firm, released its “FMI Small Cap Equity Strategy” fourth-quarter 2024 investor letter. A copy of the letter can be downloaded here. The investment philosophy of the firm is to invest in durable business franchises that are selling at a discount to their intrinsic value. In the fourth quarter, the strategy returned -0.63% (gross) and -0.81% (net) compared to 0.33% return for the Russell 2000 Index. In addition, please check the fund’s top five holdings to know its best picks in 2024.
FMI Small Cap Equity Strategy highlighted stocks like The Interpublic Group of Companies, Inc. (NYSE:IPG) in the fourth quarter 2024 investor letter. Headquartered in New York, New York, The Interpublic Group of Companies, Inc. (NYSE:IPG) offers advertising and marketing services. The one-month return of The Interpublic Group of Companies, Inc. (NYSE:IPG) was -10.96%, and its shares lost 16.67% of their value over the last 52 weeks. On January 10, 2025, The Interpublic Group of Companies, Inc. (NYSE:IPG) stock closed at $26.64 per share with a market capitalization of $9.92 billion.
FMI Small Cap Equity Strategy stated the following regarding The Interpublic Group of Companies, Inc. (NYSE:IPG) in its Q4 2024 investor letter:
“The Interpublic Group of Companies, Inc. (NYSE:IPG) is one of the world’s largest advertising holding companies. The business is capital light, generates above-average ROICs, has strong free cash flow, and there is a good deal of flexibility in the cost structure. The long-term case for the ad agencies has been built upon their independent expertise for creativity, media planning, buying, and targeting in a complex, fragmented, and rapidly evolving advertising landscape. In December, Omnicom announced it will merge with Interpublic Group in an industry altering move. We believe there are significant integration risks, including client and talent defections. This moves counters our strategic preference based on an inward focus and the return of excess capital to shareholders. We sold our 2.6% position in December 2024.”
A modern advertising billboard promoting a company’s services in the cityscape.
The Interpublic Group of Companies, Inc. (NYSE:IPG) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 25 hedge fund portfolios held The Interpublic Group of Companies, Inc. (NYSE:IPG) at the end of the third quarter which was 30 in the previous quarter. The Interpublic Group of Companies, Inc.’s (NYSE:IPG) net revenue was $2.24 billion in the third quarter of 2024. While we acknowledge the potential of The Interpublic Group of Companies, Inc. (NYSE:IPG) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
In another article, we discussed The Interpublic Group of Companies, Inc. (NYSE:IPG) and shared the list of best advertising stocks to buy according to hedge funds. In addition, please check out our hedge fund investor letters Q4 2024 page for more investor letters from hedge funds and other leading investors.
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Disclosure: None. This article is originally published at Insider Monkey.