5 Stocks Added to Rail-Splitter Capital’s Portfolio in Q1

#3 Fidelity National Information Services (NYSE:FIS)

 – Shares Owned by Rail-Splitter (as of March 31): 175,100

 – Value of Holding (as of March 31): $11.09 Million

Let’s move on to Fidelity National Information Services, another one of Rail-Splitter’s bets in the financial commodity market operators industry, which has seen average gains of over 12% in the last twelve months. Fidelity National Information Services (NYSE:FIS) posted first quarter earnings of $0.79 per share on revenue of $2.18 billion, beating EPS estimates by $0.04 but missing revenue estimates by $70 million. According to CEO Gary Norcross, the addition of solutions from SunGard’s portfolio, an acquisition that was closed in November of last year, and the consequent synergy attainment significantly expanded the company’s margins. Fidelity National was recently upgraded by Goldman Sachs to ‘Buy’ from ‘Neutral’, and shares of the company are up by 17% this year. Cantillon Capital Management, led by William Von Mueffling, trimmed its Fidelity National Information Services (NYSE:FIS) stake by 5% to 7.75 million shares during the first three months of this year.

#2 Signet Jewelers Ltd. (NYSE:SIG)

 – Shares Owned by Rail-Splitter (as of March 31): 97,160

 – Value of Holding (as of March 31): $12.05 Million

Rail-Splitter’s holding in the $8.55 billion jewelry and watch retailer amassed about 3% of the fund’s portfolio as of March 31. Shares crumbled in the first half of February, losing over 21% in the span of 11 days, which may have provided the entry point Rail-Splitter was looking for. Shares recovered all of those losses by the end of the first quarter however, buoyed by Signet’s bottom-line beat for the fourth quarter of fiscal year 2016 ending January 31, which represented a 19% year-over-year imporvement. Signet Jewelers Ltd. (NYSE:SIG) also provided upbeat guidance for its current fiscal year, and increased its three-year net synergy target associated with the integration of Zale Jewellers. David Keidan‘s Buckingham Capital Management was also bullish on Signet Jewelers Ltd. (NYSE:SIG) during the first quarter, as it hiked its holding by 11% to about 239,000 shares.

#1 American Tower Corp (NYSE:AMT)

 – Shares Owned by Rail-Splitter (as of March 31): 121,280

 – Value of Holding (as of March 31): $12.42 Million

The $44 billion operator and developer of communications real estate has seen its stock appreciate by 6.7% so far this year. American Tower Corp (NYSE:AMT) recently closed its acquisition of Viom in India as it seeks to diversify its operations. In the first quarter the specialized REIT also benefitted from the growing demand for higher bandwidth applications arising from smartphone proliferation, which has also led to mobile operators improving their coverage, capacity, and peak network speed. These factors led to American Tower Corp (NYSE:AMT)’s top-line expansion of 19.4% on a year-over-year basis to $1.29 billion in the first quarter. While this was in-line with estimates, the company’s quarterly AFFO of $1.41 beat expectations by $0.11. Skylands Capital, which is managed by Charles Paquelet, was less upbeat about the company in the first trimester, as it slashed its American Tower Corp (NYSE:AMT) holding by 22% to about 195,000 shares.

Disclosure: None