Hedge fund managers like David Einhorn, Dan Loeb, or Carl Icahn became billionaires through reaping large profits for their investors, which is why piggybacking their stock picks may provide us with significant returns as well. Many hedge funds, like Paul Singer’s Elliott Management, are pretty secretive, but we can still get some insights by analyzing their quarterly 13F filings. One of the most fertile grounds for large abnormal returns is hedge funds’ most popular small-cap picks, which are not so widely followed and often trade at a discount to their intrinsic value. In this article we will check out hedge fund activity in another small-cap stock: Interpublic Group of Companies Inc (NYSE:IPG).
Interpublic Group of Companies Inc (NYSE:IPG) investors should pay attention to a decrease in hedge fund interest lately. IPG was in 31 hedge funds’ portfolios at the end of September. There had been 35 hedge funds in our database with IPG holdings at the end of the previous quarter.At the end of this article we will also compare IPG to other stocks including Lincoln National Corporation (NYSE:LNC), Wynn Resorts, Limited (NASDAQ:WYNN), and Duke Realty Corp (NYSE:DRE) to get a better sense of its popularity.
At Insider Monkey, we’ve developed an investment strategy that has delivered market-beating returns over the past 12 months. Our strategy identifies the 100 best-performing funds of the previous quarter from among the collection of 700+ successful funds that we track in our database, which we accomplish using our returns methodology. We then study the portfolios of those 100 funds using the latest 13F data to uncover the 30 most popular mid-cap stocks (market caps of between $1 billion and $10 billion) among them to hold until the next filing period. This strategy delivered 18% gains over the past 12 months, more than doubling the 8% returns enjoyed by the S&P 500 ETFs.
What does the smart money think about Interpublic Group of Companies Inc (NYSE:IPG)?
Heading into the fourth quarter of 2016, a total of 31 of the hedge funds tracked by Insider Monkey held long positions in this stock, down by 11% over the quarter. With the smart money’s positions undergoing their usual ebb and flow, there exists a few key hedge fund managers who were boosting their holdings meaningfully (or already accumulated large positions).
According to Insider Monkey’s hedge fund database, Paul Singer’s Elliott Management has the number one position in Interpublic Group of Companies Inc (NYSE:IPG), worth close to $258.1 million, corresponding to 2.1% of its total 13F portfolio. Coming in second is Pzena Investment Management, led by Richard S. Pzena, holding a $247.8 million position; 1.5% of its 13F portfolio is allocated to the stock. Some other peers that are bullish contain John W. Rogers’ Ariel Investments, Jeffrey Tannenbaum’s Fir Tree and Mario Gabelli’s GAMCO Investors.