Heartland Advisors, an investment management company, released its “Heartland Mid Cap Value Fund” second quarter 2024 investor letter. A copy of the letter can be downloaded here. It has been difficult to reflect on how the market has behaved recently because each month of this year has felt unique. The second quarter was no different. The fund fell 4.12% in the quarter compared to the Russell Midcap® Value Index’s 3.40% decline. Negative selection effect across seven sectors, led by Consumer Discretionary and Utilities partially drove the fund’s underperformance in the quarter. In addition, you can check the top 5 holdings of the fund to know its best picks in 2024.
Heartland Mid Cap Value Fund highlighted stocks like Fidelity National Information Services Inc. (NYSE:FIS) provides financial technology solutions for financial institutions, businesses, and developers. The one-month return of Fidelity National Information Services, Inc. (NYSE:FIS) was 0.39%, and its shares gained 30.95% of their value over the last 52 weeks. On July 12, 2024, Fidelity National Information Services, Inc. (NYSE:FIS) stock closed at $76.42 per share with a market capitalization of $42.509 billion
Heartland Mid Cap Value Fund stated the following regarding Fidelity National Information Services, Inc. (NYSE:FIS) in its Q2 2024 investor letter:
“Financials. In the second quarter, we started a new position in Fidelity National Information Services, Inc. (NYSE:FIS). FIS is one of three major suppliers of core processing software and services utilized by banks, capital market participants, and corporations. Whenever you log into your mobile phone banking app, pay a bill, or transfer money, there is a decent chance that FIS enables that transaction. Given the contractual nature of its business, 80% of the company’s revenues are recurring providing better revenue visibility and less profit volatility than sector peers.
FIS is a classic self-help story about strategic course correction and capital allocation. The company’s prior management team took a wrong turn by following competitor Fiserv into the merchant acquiring industry — the intermediaries that stand between credit card networks like Visa or Mastercard and card issuers like Capital One or Citi — when it overpaid for Worldpay in 2019. Rather than boosting FIS’s growth as planned, the acquisition was a distraction as software startups began taking share from incumbents, including Worldpay…” (Click here to read the full text)
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Fidelity National Information Services, Inc. (NYSE:FIS) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 59 hedge fund portfolios held Fidelity National Information Services, Inc. (NYSE:FIS) at the end of the first quarter which was 66 in the previous quarter. Fidelity National Information Services, Inc. (NYSE:FIS) had a strong first quarter, exceeding its financial outlook for the fifth consecutive quarter (see the details here). While we acknowledge the potential of Fidelity National Information Services, Inc. (NYSE:FIS) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
In another article, we discussed Fidelity National Information Services, Inc. (NYSE:FIS) and shared Parnassus Value Equity Fund’s views on the company in the previous quarter. In addition, please check out our hedge fund investor letters Q2 2024 page for more investor letters from hedge funds and other leading investors.
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Disclosure: None. This article is originally published at Insider Monkey.
