Artisan Partners, an investment management company, released its “Artisan Mid Cap Value Fund” third quarter 2023 investor letter. A copy of the same can be downloaded here. In the third quarter, its Investor Class fund ARTQX returned -2.94%, Advisor Class fund APDQX posted a return of -2.95%, and Institutional Class fund APHQX returned -2.89 %, compared to a -4.46% return for the Russell Midcap Value Index. The portfolio had a negative return in Q3 but performed better than the Russell Midcap Value Index due to favorable security selection. In addition, please check the fund’s top five holdings to know its best picks in 2023.
Artisan Mid Cap Value Fund highlighted stocks like Omnicom Group Inc. (NYSE:OMC) in the Q3 2023 investor letter. Headquartered in New York, New York, Omnicom Group Inc. (NYSE:OMC) provides advertising, marketing, and corporate communications services. On October 13, 2023, Omnicom Group Inc. (NYSE:OMC) stock closed at $74.55 per share. One-month return of Omnicom Group Inc. (NYSE:OMC) was -3.69%, and its shares gained 11.82% of their value over the last 52 weeks. Omnicom Group Inc. (NYSE:OMC) has a market capitalization of $14.729 billion.
Artisan Mid Cap Value Fund made the following comment about Omnicom Group Inc. (NYSE:OMC) in its Q3 2023 investor letter:
“Omnicom Group Inc. (NYSE:OMC) is a global advertising and marketing services holding company. Organic growth came in slightly lighter than expected, which caused the stock to sell off. Even after the pullback, the stock has returned 22% over the prior one year. The business, while cyclical due to its ties to ad spend, is a royalty on competition as clients around the world seek Omnicom’s expertise in creating, managing and tracking advertising campaigns. The business generates strong free cash flow, which has funded capital return in the form of share repurchases and dividends (3.8% current dividend yield), and is mostly a cost-plus business, which lessens the risk of margin pressure. Omnicom also has a flexible cost model allowing it to cut overhead during economic downturns to protect operating profit. While we cannot predict the economic cycle, Omnicom is a business that has delivered high returns on equity over a full business cycle and is currently selling at an attractive ~12X earnings.”
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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, 24 hedge fund portfolios held Omnicom Group Inc. (NYSE:OMC) at the end of the second quarter, which was 30 in the previous quarter.
We discussed Omnicom Group Inc. (NYSE:OMC) in another article and shared the list of most oversold S&P 500 stocks. In addition, please check out our hedge fund investor letters Q3 2023 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.
