Fiduciary Management Inc. (FMI), an independent money management firm, released its “FMI Large 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 -3.92% (gross) and -4.03% (net) compared to 2.41% return for the S&P 500 Index. In addition, please check the fund’s top five holdings to know its best picks in 2024.
FMI Large Cap Equity Strategy highlighted stocks like Omnicom Group Inc. (NYSE:OMC) in the Q4 2023 investor letter. Headquartered in New York, New York, Omnicom Group Inc. (NYSE:OMC) provides advertising, marketing, and corporate communications services. The one-month return of Omnicom Group Inc. (NYSE:OMC) was -9.70%, and its shares lost 7.54% of their value over the last 52 weeks. On January 10, 2025, Omnicom Group Inc. (NYSE:OMC) stock closed at $82.07 per share with a market capitalization of $16.12 billion.
FMI Large Cap Equity Strategy stated the following regarding Omnicom Group Inc. (NYSE:OMC) in its Q4 2024 investor letter:
“Omnicom Group Inc. (NYSE:OMC) 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 2.7% position in Dec 2024.”
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Omnicom Group Inc. (NYSE:OMC) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 26 hedge fund portfolios held Omnicom Group Inc. (NYSE:OMC) at the end of the third quarter which was 31 in the previous quarter. While we acknowledge the potential of Omnicom Group Inc. (NYSE:OMC) 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 Omnicom Group Inc. (NYSE:OMC) 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.