A whopping number of 13F filings filed with U.S. Securities and Exchange Commission has been processed by Insider Monkey so that individual investors can look at the overall hedge fund sentiment towards the stocks included in their watchlists. These freshly-submitted public filings disclose money managers’ equity positions as of the end of the three-month period that ended September 30th, so let’s proceed with the discussion of the hedge fund sentiment on Fidelity National Information Services Inc. (NYSE:FIS).
Fidelity National Information Services Inc. (NYSE:FIS) was in 69 hedge funds’ portfolios at the end of September. The all time high for this statistic is 111. FIS investors should pay attention to a decrease in hedge fund sentiment of late. There were 72 hedge funds in our database with FIS positions at the end of the second quarter. Our calculations also showed that FIS isn’t among the 30 most popular stocks among hedge funds (click for Q3 rankings).
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. Keeping this in mind we’re going to analyze the key hedge fund action encompassing Fidelity National Information Services Inc. (NYSE:FIS).
Eric Mandelblatt of Soroban Capital Partners
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 were long this stock, a change of -4% from one quarter earlier. On the other hand, there were a total of 88 hedge funds with a bullish position in FIS a year ago. So, let’s see which hedge funds were among the top holders of the stock and which hedge funds were making big moves.
The largest stake in Fidelity National Information Services Inc. (NYSE:FIS) was held by Select Equity Group, which reported holding $1105.8 million worth of stock at the end of September. It was followed by Viking Global with a $872.7 million position. Other investors bullish on the company included Soroban Capital Partners, Cantillon Capital Management, and 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 experienced declining sentiment from the smart money, it’s easy to see that there lies a certain “tier” of hedge funds who were dropping their entire stakes in the third quarter. Interestingly, Matthew Stadelman’s Diamond Hill Capital dumped the largest position of the 750 funds watched by Insider Monkey, comprising close to $428.4 million in stock, and Aaron Cowen’s Suvretta Capital Management was right behind this move, as the fund dumped about $85 million worth. These moves are important to note, as aggregate hedge fund interest dropped by 3 funds in the third quarter.
Let’s go over hedge fund activity in other stocks – not necessarily in the same industry as Fidelity National Information Services Inc. (NYSE:FIS) but similarly valued. We will take a look at 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 closest 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 28.6% in 2021 through November 30th and still beat the market by 5.6 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 -14.1% since the end of the third quarter (through 11/30) 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 most of these stocks already outperformed the market since 2019.
Follow Fidelity National Information Services Inc. (NYSE:FIS)
Follow Fidelity National Information Services Inc. (NYSE:FIS)
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Disclosure: None. This article was originally published at Insider Monkey.
