The Insider Monkey team has completed processing the quarterly 13F filings for the June quarter submitted by the hedge funds and other money managers included in our extensive database. Most hedge fund investors experienced strong gains on the back of a strong market performance, which certainly propelled them to adjust their equity holdings so as to maintain the desired risk profile. As a result, the relevancy of these public filings and their content is indisputable, as they may reveal numerous high-potential stocks. The following article will discuss the smart money sentiment towards Fidelity National Information Services Inc. (NYSE:FIS).
Fidelity National Information Services Inc. (NYSE:FIS) was in 72 hedge funds’ portfolios at the end of the second quarter of 2021. The all time high for this statistic is 111. FIS has seen a decrease in activity from the world’s largest hedge funds of late. There were 74 hedge funds in our database with FIS positions at the end of the first quarter. Our calculations also showed that FIS isn’t among the 30 most popular stocks among hedge funds (click for Q2 rankings).
In the financial world there are a large number of tools investors have at their disposal to grade stocks. A pair of the most under-the-radar tools are hedge fund and insider trading indicators. We have shown that, historically, those who follow the top picks of the best fund managers can outperform the broader indices by a solid amount. Insider Monkey’s monthly stock picks returned 185.4% since March 2017 and outperformed the S&P 500 ETFs by more than 79 percentage points (see the details here). That’s why we believe hedge fund sentiment is a useful indicator that investors should pay attention to.
William Von Mueffling of Cantillon Capital Management
At Insider Monkey, we scour multiple sources to uncover the next great investment idea. For example, lithium mining is one of the fastest growing industries right now, so we are checking out stock pitches like this emerging lithium stock. 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. We read hedge fund investor letters and listen to stock pitches at hedge fund conferences. You can subscribe to our free daily newsletter on our homepage. Keeping this in mind let’s take a peek at the new hedge fund action encompassing Fidelity National Information Services Inc. (NYSE:FIS).
Do Hedge Funds Think FIS Is A Good Stock To Buy Now?
At Q2’s end, a total of 72 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of -3% from one quarter earlier. Below, you can check out the change in hedge fund sentiment towards FIS over the last 24 quarters. With hedge funds’ positions undergoing their usual ebb and flow, there exists an “upper tier” of noteworthy hedge fund managers who were increasing their holdings significantly (or already accumulated large positions).
The largest stake in Fidelity National Information Services Inc. (NYSE:FIS) was held by Viking Global, which reported holding $1303.4 million worth of stock at the end of June. It was followed by Select Equity Group with a $922.9 million position. Other investors bullish on the company included Steadfast Capital Management, Cantillon Capital Management, and Soroban Capital Partners. 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 8.44% of its 13F portfolio. Palestra Capital Management is also relatively very bullish on the stock, dishing out 6.78 percent of its 13F equity portfolio to FIS.
Since Fidelity National Information Services Inc. (NYSE:FIS) has faced a decline in interest from the entirety of the hedge funds we track, it’s easy to see that there were a few funds that slashed their entire stakes heading into Q3. At the top of the heap, Daniel Sundheim’s D1 Capital Partners cut the biggest investment of the 750 funds followed by Insider Monkey, totaling about $159.5 million in stock. James Parsons’s fund, Junto Capital Management, also said goodbye to its stock, about $93.8 million worth. These transactions are intriguing to say the least, as total hedge fund interest dropped by 2 funds heading into Q3.
Let’s check out hedge fund activity in other stocks similar to Fidelity National Information Services Inc. (NYSE:FIS). These stocks are Mondelez International Inc (NASDAQ:MDLZ), NIO Inc. (NYSE:NIO), Gilead Sciences, Inc. (NASDAQ:GILD), General Motors Company (NYSE:GM), U.S. Bancorp (NYSE:USB), Automatic Data Processing (NASDAQ:ADP), and Crown Castle International Corp. (NYSE:CCI). This group of stocks’ market caps resemble FIS’s market cap.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| MDLZ | 53 | 2946868 | 8 |
| NIO | 34 | 2066911 | 6 |
| GILD | 54 | 1732734 | -11 |
| GM | 86 | 7414862 | 0 |
| USB | 41 | 8305634 | -2 |
| ADP | 41 | 3018791 | -1 |
| CCI | 42 | 2093903 | -1 |
| Average | 50.1 | 3939958 | -0.1 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 50.1 hedge funds with bullish positions and the average amount invested in these stocks was $3940 million. That figure was $7370 million in FIS’s case. General Motors Company (NYSE:GM) is the most popular stock in this table. On the other hand NIO Inc. (NYSE:NIO) is the least popular one with only 34 bullish hedge fund positions. Fidelity National Information Services Inc. (NYSE:FIS) is not the most popular stock in this group but hedge fund interest is still above average. Our overall hedge fund sentiment score for FIS is 59. 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. This is a slightly positive signal but we’d rather spend our time researching stocks that hedge funds are piling on. 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 24.1% in 2021 through September 20th and beat the market again by 6.9 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 -12.8% since the end of June (through 9/20) 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 many 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)
Suggested Articles:
- 20 Companies That Are The Biggest Polluters in the World
- George Soros’ Top 10 Stock Picks
- Top 15 Dividend Stocks With Upside Potential
Disclosure: None. This article was originally published at Insider Monkey.
