Oakmark Funds, an investment management firm, published its “Oakmark Global Fund” third quarter 2021 investor letter – a copy of which can be seen here. A return of -3.33% was reported by the fund in the third quarter of 2021, which compares to a small loss for the MSCI World Index and -1.1% for the Lipper Global Fund Index. You can take a look at the fund’s top 5 holdings to have an idea about their best picks for 2021.
Oakmark Funds, 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 54.85% return since the beginning of the year, while its 12-month returns are up by 72.69%. The stock closed at $36.42 per share on November 5, 2021.
Here is what Oakmark Funds has to say about The Interpublic Group of Companies, Inc. in its Q3 2021 investor letter:
“Interpublic is the fifth largest U.S. advertising agency. Management spent the past few years reorienting the company for a digital marketing future, and these efforts are now paying off through market share gains and improving profit margins.”
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 first half of 2021, compared to 29 funds in the previous quarter. The Interpublic Group of Companies, Inc. (NYSE: IPG) delivered a 0.11% return in the past 3 months.
Hedge funds’ reputation as shrewd investors has been tarnished in the last decade as their hedged returns couldn’t keep up with the unhedged returns of the market indices. Our research has shown that hedge funds’ small-cap stock picks managed to beat the market by double digits annually between 1999 and 2016, but the margin of outperformance has been declining in recent years. Nevertheless, we were still able to identify in advance a select group of hedge fund holdings that outperformed the S&P 500 ETFs by 115 percentage points since March 2017 (see the details here). We were also able to identify in advance a select group of hedge fund holdings that underperformed the market by 10 percentage points annually between 2006 and 2017. Interestingly the margin of underperformance of these stocks has been increasing in recent years. Investors who are long the market and short these stocks would have returned more than 27% annually between 2015 and 2017. We have been tracking and sharing the list of these stocks since February 2017 in our quarterly newsletter.
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Disclosure: None. This article is originally published at Insider Monkey.
