WPP PLC (WPP) Fell Due to Revenue Growth Falling Short of Expectations

Hotchkis & Wiley, an investment management company, released its “Hotchkis & Wiley Mid-Cap Value Fund” third-quarter 2025 investor letter. A copy of the letter can be downloaded here. In the third quarter of 2025, equity markets posted strong gains with the S&P 500 Index, Nasdaq Composite, Dow Jones Industrial Average, and Russell 2000 Index hitting all-time highs. Enthusiasm over artificial intelligence (AI), a long-awaited Federal Reserve rate cut, and stronger-than-expected corporate earnings supported the investor sentiments in the quarter. The fund outperformed the Russell Midcap Value Index in the third quarter, gaining 7.74% vs 6.18% for the index. Please review the fund’s top 5 holdings to gain insight into their key selections for 2025.

In its third-quarter 2025 investor letter, Hotchkis & Wiley Mid-Cap Value Fund highlighted stocks such as WPP plc (NYSE:WPP). WPP plc (NYSE:WPP) is a creative transformation company that offers communications, experience, commerce, and technology services. The one-month return for WPP plc (NYSE:WPP) was 8.57%, and its shares lost 62.46% over the last 52 weeks. On December 09, 2025, WPP plc (NYSE:WPP) stock closed at $21.16 per share, with a market capitalization of $4.575 billion.

Hotchkis & Wiley Mid-Cap Value Fund stated the following regarding WPP plc (NYSE:WPP) in its third quarter 2025 investor letter:

“WPP plc (NYSE:WPP) is one of the world’s largest ad agency holding companies. WPP shares came under pressure on lower-than-expected revenue growth. WPP delivered disappointing Q2 earnings results that weighed on the Company’s shares. WPP introduced a new CEO during the quarter who brings a wealth of experience in digital transformation and artificial intelligence that are seen as key assets for the Company’s turnaround plans. Trading at a low multiple of consensus earnings with a good balance sheet, we believe the company can deliver near mid-teens returns from the combination of capital return and capital free organic growth.”

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WPP plc (NYSE:WPP) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 11 hedge fund portfolios held WPP plc (NYSE:WPP) at the end of the third quarter, which was 8 in the previous quarter. While we acknowledge the risk and potential of WPP plc (NYSE:WPP) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than WPP plc (NYSE:WPP) and that has 10,000% upside potential, check out our report about this cheapest AI stock.

In another article, we covered WPP plc (NYSE:WPP) and shared the list of best undervalued UK stocks to buy according to analysts. In addition, please check out our hedge fund investor letters Q3 2025 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.