Hedge funds are no longer crazy about Fidelity National Information Services Inc. (FIS)
The Insider Monkey team has completed processing 13F quarterly returns for the June quarter submitted by the hedge funds and other fund managers included in our extensive database. Most hedge fund investors have seen solid gains from strong market performance, which has certainly prompted them to adjust their holdings in equities in order to maintain the desired risk profile. As a result, the relevance of these public repositories and their content is indisputable, as they can reveal many stocks with high potential. The following article will discuss the smart money sentiment toward Fidelity National Information Services Inc. (NYSE: FIS).
Fidelity National Information Services Inc. (NYSE: FIS) was listed in 72 hedge fund portfolios at the end of the second quarter of 2021. The all-time high for this statistic is 111. FIS has seen a decline in activity from the largest coverage of the world. end fund. There were 74 hedge funds in our database with FIS positions at the end of the first quarter. Our calculations also showed that FIS is not among the 30 most popular stocks among hedge funds (click for Q2 rank).
In the financial world, there are a number of tools available to investors for valuing stocks. A pair of the lesser-known tools are the hedge fund and insider trading indicators. We have shown that historically those who follow the best picks of the best fund managers can outperform larger indices by a solid amount. Insider Monkey’s monthly stock picks have returned 185.4% since March 2017 and have outperformed S&P 500 ETFs by more than 79 percentage points (see details here). This is 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 big investing idea. For example, lithium mining is one of the fastest growing industries right now, so we’re looking at stock locations like this. emerging lithium stocks. We go through lists like the top 10 electric vehicle stocks to pick the next Tesla that will deliver 10x yield. Even though we only recommend positions in a tiny fraction of the companies we analyze, we check as many stocks as possible. We read letters from hedge fund investors and listen to equity pitches at hedge fund conferences. You can sign up for our free daily newsletter on our homepage. With that in mind, let’s take a look at new stock from hedge funds encompassing Fidelity National Information Services Inc. (NYSE: FIS).
Do hedge funds think FIS is a good stock to buy now?
At the end of the second quarter, a total of 72 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of -3% from the previous quarter. Below you can see how hedge fund sentiment towards the FIS has evolved over the past 24 quarters. With hedge fund positions undergoing their usual ebb and flow, there is a “top tier” of outstanding hedge fund managers who were significantly increasing their holdings (or already accumulating large positions).
The largest stake in Fidelity National Information Services Inc. (NYSE: FIS) was held by Viking Global, which said it held $ 1,303.4 million in shares at the end of June. It was followed by Select Equity Group with a position of $ 922.9 million. Other optimistic investors for 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 assigned the largest weight to Fidelity National Information Services Inc. (NYSE: FIS), approximately 8.44% of its 13F portfolio. Palestra Capital Management is also relatively very bullish on the stock, distributing 6.78% of its 13F equity portfolio to FIS.
Given that Fidelity National Information Services Inc. (NYSE: FIS) has faced a drop in interest from all of the hedge funds we track, it’s easy to see that a few funds have reduced all of their holdings before. the third trimester. At the top of the chart, Daniel Sundheim’s D1 Capital Partners made the largest investment of the 750 funds, followed by Insider Monkey, totaling around $ 159.5 million in shares. James Parsons’ fund, Junto Capital Management, also bid farewell to its shares, valued at around $ 93.8 million. These transactions are intriguing to say the least, as total hedge fund interest fell by 2 funds before the third quarter.
Let’s take a look at the activity of hedge funds 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), US Bancorp (NYSE: USB), Automatic Data Processing (NASDAQ: ADP) and Crown Castle International Corp. (NYSE: CCI). The market capitalizations of this group of stocks resemble the market capitalization of FIS.
[table] Ticker, number of HF with positions, total value of HF positions (x1000), change of 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 Medium, 50.1.3939958, -0.1 [/table]
Check the table here if you have 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 $ 3,940 million. That figure was $ 7,370 million in the case of the FIS. 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 with only 34 bullish hedge fund positions. Fidelity National Information Services Inc. (NYSE: FIS) isn’t 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 a 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 prefer to spend our time researching the stocks on which hedge funds are accumulating. Our calculations showed that the 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 20 and again beat the market by 6.9 percentage points. Unfortunately, FIS was not as popular as these 5 stocks and the hedge funds that bet on FIS were disappointed as the stock returned -12.8% from the end of June (through 9/20) and under -performed the market. If you want to invest in large cap stocks with huge upside potential, you should check out the 5 most popular stocks among hedge funds, as many of these stocks have already outperformed the market since 2019.
Receive real-time email alerts: Follow Fidelity National Information Services Inc. (NYSE: FIS)
Disclosure: none. This article originally appeared on Insider Monkey.