Here’s What Makes Interpublic Group of Companies (IPG) A Smart Choice

Ariel Investments, an investment management firm, published its “Ariel Fund & Ariel Appreciation Fund” third-quarter 2021 investor letter – a copy of which can be downloaded here. A return of -0.17% was recorded by the Fund for the third quarter of 2021, compared to the Russell 2500TM Value Index, Russell 2500TM Index, and S&P 500® Index which had a -2.07%, -2.68%, and 0.58% returns respectively for the same period. You can take a look at the fund’s top 5 holdings to have an idea about their best picks for 2021.

Ariel Fund & Ariel Appreciation Fund, in its Q3 2021 investor letter, mentioned The Interpublic Group of Companies, Inc. (NYSE: IPG) and discussed its stance on the firm. The Interpublic Group of Companies, Inc. is a New York, New York-based advertising company with a $14.3 billion market capitalization. IPG delivered a 54.68% return since the beginning of the year, while its 12-month returns are up by 50.95%. The stock closed at $36.38 per share on December 15, 2021.

Here is what Ariel Fund & Ariel Appreciation Fund has to say about The Interpublic Group of Companies, Inc.  in its Q3 2021 investor letter:

“Marketing communication company, Interpublic Group of Companies, Inc. (IPG) was the top contributor over the trailing one-year period. Notably, IPG is delivering a stronger than expected revenue mix between Technology and Healthcare relative to its peer group, solid cost containment and margin expansion. Meanwhile, the company continued to focus on de-levering the balance sheet. In our view, IPG’s Acxiom acquisition for data has proven to be a winner, helping the company increase their revenue across all eight major advertising sectors by industry. We believe these results continue to demonstrate the strength and resiliency of the business model and expect IPG to be a beneficiary of increasing advertising and marketing budgets across an improving global economy.”

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Based on our calculations, The Interpublic Group of Companies, Inc. (NYSE: IPG) was not able to clinch a spot in our list of the 30 Most Popular Stocks Among Hedge Funds. IPG was in 31 hedge fund portfolios at the end of the third quarter of 2021, compared to 31 funds in the previous quarter. The Interpublic Group of Companies, Inc. (NYSE: IPG) delivered a -3.40% return in the past 3 months.

Last month, we also shared another hedge fund’s views on IPG in another article. You can find more than 100 investor letters from hedge funds and prominent investors on our hedge fund investor letters 2021 Q3 page.

Disclosure: None. This article is originally published at Insider Monkey.