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Omnicom Group Inc. (OMC): Top Hedge Fund Dumps Billion Dollar Position

Seeing as Omnicom Group Inc. (NYSE:OMC) has faced bearish sentiment from hedge fund managers, it’s safe to say that there is a sect of hedgies who were dropping their positions entirely in the third quarter. It’s worth mentioning that First Eagle Investment Management dumped the largest position of all the hedgies tracked by Insider Monkey, totaling close to $1.05 billion in stock, and Jim Simons’ Renaissance Technologies was right behind this move, as the fund sold off about $52.3 million worth. These moves are interesting, as total hedge fund interest fell by 3 funds in the third quarter.

Let’s check out hedge fund activity in other stocks – not necessarily in the same industry as Omnicom Group Inc. (NYSE:OMC) but similarly valued. These stocks are L Brands Inc (NYSE:LB), JD.Com Inc (ADR) (NASDAQ:JD), Cummins Inc. (NYSE:CMI), and TELUS Corporation (USA) (NYSE:TU). This group of stocks’ market valuations match OMC’s market valuation.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
LB 32 1319885 3
JD 44 7410928 -7
CMI 29 510425 1
TU 9 224564 -3

As you can see these stocks had an average of 28.5 hedge funds with bullish positions and the average amount invested in these stocks was $2.37 billion. That figure was $733 million in OMC’s case. JD.Com Inc (ADR) (NASDAQ:JD) is the most popular stock in this table. On the other hand TELUS Corporation (USA) (NYSE:TU) is the least popular one with only 9 bullish hedge fund positions. Omnicom Group Inc. (NYSE:OMC) is not the least popular stock in this group but hedge fund interest is still below average. This is a slightly negative signal and we’d rather spend our time researching stocks that hedge funds are pouring money into. In this regard JD might be a better candidate to consider a long position in.

Disclosure: None

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