The latest 13F reporting period has come and gone, and Insider Monkey have plowed through 867 13F filings that hedge funds and well-known value investors are required to file by the SEC. The 13F filings show the funds’ and investors’ portfolio positions as of September 30th, when the S&P 500 Index was trading around the 4300 level. Since then investors decided to bet on the economic recovery and a stock market rebound even though we experienced a temporary correction in January. In this article you are going to find out whether hedge funds thought Fidelity National Information Services Inc. (NYSE:FIS) was a good investment heading into the fourth quarter and how the stock traded in comparison to the top hedge fund picks.
Fidelity National Information Services Inc. (NYSE:FIS) shareholders have witnessed a decrease in enthusiasm from smart money recently. Fidelity National Information Services Inc. (NYSE:FIS) was in 69 hedge funds’ portfolios at the end of the third quarter of 2021. The all time high for this statistic is 111. Our calculations also showed that FIS isn’t among the 30 most popular stocks among hedge funds (click for Q3 rankings).
William Von Mueffling of Cantillon Capital Management
At Insider Monkey, we scour multiple sources to uncover the next great investment idea. For example, lithium prices have more than doubled over the past year, so we go through lists like the 10 best EV stocks to pick the next Tesla that will deliver a 10x return. Even though we recommend positions in only a tiny fraction of the companies we analyze, we check out as many stocks as we can. Now we’re going to take a look at the latest hedge fund action encompassing Fidelity National Information Services Inc. (NYSE:FIS).
Do Hedge Funds Think FIS Is A Good Stock To Buy Now?
At Q3’s end, a total of 69 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of -4% from the second quarter of 2021. Below, you can check out the change in hedge fund sentiment towards FIS over the last 25 quarters. So, let’s review which hedge funds were among the top holders of the stock and which hedge funds were making big moves.
Of the funds tracked by Insider Monkey, Robert Joseph Caruso’s Select Equity Group has the most valuable position in Fidelity National Information Services Inc. (NYSE:FIS), worth close to $1.1058 billion, comprising 3.7% of its total 13F portfolio. Coming in second is Viking Global, led by Andreas Halvorsen, holding a $872.7 million position; the fund has 2.4% of its 13F portfolio invested in the stock. Some other peers with similar optimism consist of Eric W. Mandelblatt and Gaurav Kapadia’s Soroban Capital Partners, William von Mueffling’s Cantillon Capital Management and Robert Pitts’s Steadfast Capital Management. In terms of the portfolio weights assigned to each position Park Presidio Capital allocated the biggest weight to Fidelity National Information Services Inc. (NYSE:FIS), around 8.53% of its 13F portfolio. BlueMar Capital Management is also relatively very bullish on the stock, designating 6.78 percent of its 13F equity portfolio to FIS.
Since Fidelity National Information Services Inc. (NYSE:FIS) has witnessed a decline in interest from the smart money, it’s easy to see that there is a sect of hedgies that decided to sell off their full holdings last quarter. It’s worth mentioning that Matthew Stadelman’s Diamond Hill Capital sold off the largest investment of all the hedgies followed by Insider Monkey, comprising about $428.4 million in stock. Aaron Cowen’s fund, Suvretta Capital Management, also cut its stock, about $85 million worth. These moves are interesting, as total hedge fund interest fell by 3 funds last quarter.
Let’s now review hedge fund activity in other stocks similar to Fidelity National Information Services Inc. (NYSE:FIS). These stocks are Duke Energy Corporation (NYSE:DUK), Crown Castle International Corp. (NYSE:CCI), Chubb Limited (NYSE:CB), The Bank of Nova Scotia (NYSE:BNS), The Sherwin-Williams Company (NYSE:SHW), Capital One Financial Corp. (NYSE:COF), and Fiserv, Inc. (NASDAQ:FISV). This group of stocks’ market caps are similar to FIS’s market cap.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| DUK | 32 | 687541 | -4 |
| CCI | 45 | 2089073 | 3 |
| CB | 30 | 1272774 | -12 |
| BNS | 17 | 193321 | 3 |
| SHW | 44 | 1576816 | -5 |
| COF | 55 | 4708790 | -9 |
| FISV | 65 | 3945223 | -7 |
| Average | 41.1 | 2067648 | -4.4 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 41.1 hedge funds with bullish positions and the average amount invested in these stocks was $2068 million. That figure was $6044 million in FIS’s case. Fiserv, Inc. (NASDAQ:FISV) is the most popular stock in this table. On the other hand The Bank of Nova Scotia (NYSE:BNS) is the least popular one with only 17 bullish hedge fund positions. Compared to these stocks Fidelity National Information Services Inc. (NYSE:FIS) is more popular among hedge funds. Our overall hedge fund sentiment score for FIS is 70.6. Stocks with higher number of hedge fund positions relative to other stocks as well as relative to their historical range receive a higher sentiment score. Our calculations showed that top 5 most popular stocks among hedge funds returned 95.8% in 2019 and 2020, and outperformed the S&P 500 ETF (SPY) by 40 percentage points. These stocks gained 29.6% in 2021 and still beat the market by 3.6 percentage points. Unfortunately, FIS wasn’t nearly as popular as these 5 stocks and hedge funds that were betting on FIS were disappointed as the stock returned -1.1% since the end of the third quarter (through 1/31) and underperformed the market. If you are interested in investing in large cap stocks with huge upside potential, you should check out the top 5 most popular stocks among hedge funds as all of these stocks already outperformed the market since 2019.
Follow Fidelity National Information Services Inc. (NYSE:FIS)
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Disclosure: None. This article was originally published at Insider Monkey.
