In September 2016, we recommended going long the misunderstood advertising company Omnicom Group Inc if certain events took place.

The historical high correlation between OMC and the S&P500 Index made OMC a sub-optimal, high beta proxy for the SPY despite its above average ROIC & EVA.

Strategies for improving OMC's relative stock price performance included optimizing its balance sheet (principally via a material stock buyback) and implementation of a number of additional corporate governance reforms.

The good news is that since the Brexit vote in June of 2016, the OMC stock price performance has decoupled from the S&P500 Index.

The bad news is that OMC has materially underperformed the S&P500 Index during this ongoing equity bull market. We would continue to avoid OMC until internal or external reforms are implemented.