Investor Newsletter

The firm initiated a position in OMC in 3Q25, viewing a roughly 7-8x P/E and 4% dividend as attractive/supportive, seeing it as a counter-trade to AI, with reasonable leverage and on-target cost savings following its acquisition of its top US competitor, against a highly bearish consensus.

“To help counter the above, we initiated a position in OMC in 3Q25, seeing a roughly 7-8x P/E and 4% dividend as attractive / supportive. OMC, from our perspective, is the counter trade to everything AI. The advertising industry has been grappling with decade-long deflation due to the advent of digital ads. Consensus expects AI to further damage the industry’s business model. OMC recently used stock and cash to purchase its top US competitor. To date, the cost savings appear on target, leverage is reasonable, and as noted previously, investors are paid about a 4% yield to see how fundamentals develop versus a highly bearish consensus.”