Were Hedge Funds Right About Fidelity National Information Services Inc. (FIS)? (2023)

The latest 13F reporting period has come and gone, and Insider Monkey is again at the forefront when it comes to making use of this gold mine of data. Insider Monkey finished processing 866 13F filings submitted by hedge funds and prominent investors. These filings show these funds' portfolio positions as of March 31st, 2020. In this article we are going to take a look at smart money sentiment towards Fidelity National Information Services Inc. (NYSE:FIS).

Is Fidelity National Information Services Inc. (NYSE:FIS) a healthy stock for your portfolio? Hedge funds were turning less bullish. The number of bullish hedge fund bets fell by 14 lately. Fidelity National Information Services Inc. (NYSE:FIS) was in 74 hedge funds' portfolios at the end of the first 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 Q1 rankings).

Hedge funds' reputation as shrewd investors has been tarnished in the last decade as their hedged returns couldn't keep up with the unhedged returns of the market indices. Our research has shown that hedge funds' small-cap stock picks managed to beat the market by double digits annually between 1999 and 2016, but the margin of outperformance has been declining in recent years. Nevertheless, we were still able to identify in advance a select group of hedge fund holdings that outperformed the S&P 500 ETFs by 115 percentage points since March 2017 (see the details here). We were also able to identify in advance a select group of hedge fund holdings that underperformed the market by 10 percentage points annually between 2006 and 2017. Interestingly the margin of underperformance of these stocks has been increasing in recent years. Investors who are long the market and short these stocks would have returned more than 27% annually between 2015 and 2017. We have been tracking and sharing the list of these stocks since February 2017 in our quarterly newsletter.

Were Hedge Funds Right About Fidelity National Information Services Inc. (FIS)? (1)

(Video) Fidelity National CEO discusses Worldpay acquisition

Dan Loeb of Third Point

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. Now let's take a glance at the recent hedge fund action regarding Fidelity National Information Services Inc. (NYSE:FIS).

Do Hedge Funds Think FIS Is A Good Stock To Buy Now?

Heading into the second quarter of 2021, a total of 74 of the hedge funds tracked by Insider Monkey were long this stock, a change of -16% from the fourth quarter of 2020. The graph below displays the number of hedge funds with bullish position in FIS over the last 23 quarters. With hedge funds' capital changing hands, there exists a select group of notable hedge fund managers who were adding to their holdings meaningfully (or already accumulated large positions).

(Video) Why this investor says Fidelity is a value buy right now

Were Hedge Funds Right About Fidelity National Information Services Inc. (FIS)? (2)

The largest stake in Fidelity National Information Services Inc. (NYSE:FIS) was held by Viking Global, which reported holding $1349.6 million worth of stock at the end of December. It was followed by Select Equity Group with a $977.8 million position. Other investors bullish on the company included Cantillon Capital Management, Steadfast Capital Management, and Farallon Capital. 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 8.81% of its 13F portfolio. Incline Global Management is also relatively very bullish on the stock, earmarking 7.51 percent of its 13F equity portfolio to FIS.

(Video) FIS Stock Fidelity National Information Services, Inc Stock Trading Strategies, Personal Finance No

Seeing as Fidelity National Information Services Inc. (NYSE:FIS) has witnessed bearish sentiment from the smart money, it's easy to see that there were a few fund managers that elected to cut their full holdings in the first quarter. Interestingly, Lone Pine Capital said goodbye to the biggest stake of the 750 funds watched by Insider Monkey, totaling an estimated $396.1 million in stock, and Dan Loeb's Third Point was right behind this move, as the fund sold off about $302.2 million worth. These moves are intriguing to say the least, as total hedge fund interest fell by 14 funds in the first quarter.

Let's check out 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 Lam Research Corporation (NASDAQ:LRCX), S&P Global Inc. (NYSE:SPGI), Coupang, Inc. (NYSE:CPNG), Cigna Corporation (NYSE:CI), U.S. Bancorp (NYSE:USB), General Motors Company (NYSE:GM), and Mondelez International Inc (NASDAQ:MDLZ). This group of stocks' market values resemble FIS's market value.

[table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position LRCX,54,3164975,-2 SPGI,66,6245296,-9 CPNG,40,21669289,40 CI,53,2497828,-4 USB,43,8335231,-17 GM,86,8053011,16 MDLZ,45,2845001,-5 Average,55.3,7544376,2.7 [/table]

View table here if you experience formatting issues.

As you can see these stocks had an average of 55.3 hedge funds with bullish positions and the average amount invested in these stocks was $7544 million. That figure was $8251 million in FIS's case. General Motors Company (NYSE:GM) is the most popular stock in this table. On the other hand Coupang, Inc. (NYSE:CPNG) is the least popular one with only 40 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 48. 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 25.8% in 2021 through August 6th and beat the market again by 6.7 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 -4.6% since the end of March (through 8/6) 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.

(Video) Overlooked Stock Earnings: FIS, AMKR

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Disclosure: None. This article was originally published at Insider Monkey.

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Does Fidelity work with hedge funds? ›

Fidelity Investments has launched Fidelity Diversifying Solutions, a new division offer investors access to hedge-fund like strategies, according to a report by Bloomberg.

Is FIS a good stock? ›

The financial health and growth prospects of FIS, demonstrate its potential to outperform the market. It currently has a Growth Score of C. Recent price changes and earnings estimate revisions indicate this would be a good stock for momentum investors with a Momentum Score of A.

What was the original purpose of hedge funds? ›

Hedge funds are mostly unregulated investment pools that can only issue securities privately to qualified investors. Alfred W. Jones is generally believed to have started the first hedge fund in 1949, pursuing a strategy of buying stocks and hedging the positions with short sales.

What is the most successful hedge fund in history? ›

Bridgewater Associates

Bridgewater is the world's largest hedge fund, with about $150 billion in capital. Since its founding in 1975, Bridgewater has returned $52.2 billion in gains to its investors – more than any other hedge fund on the planet.

What is Fidelity Investments best known for? ›

Fidelity Investments is well known for its encyclopedic line-up of actively managed mutual funds and low-cost index funds. Among the company's more than 300 funds, we screened for funds with low investment minimums, expense ratios below the category average and zero transaction fees.

Are hedge funds better than mutual funds? ›

Mutual funds are generally considered safer investments than hedge funds. That's because fund managers are limited in their ability to use riskier strategies such as leveraging their holdings, which can increase returns, but it also increases volatility.

Will FIS stock go up? ›

Stock Price Forecast

The 31 analysts offering 12-month price forecasts for Fidelity National Information Services Inc have a median target of 115.00, with a high estimate of 160.00 and a low estimate of 88.00. The median estimate represents a +52.00% increase from the last price of 75.66.

Is Fidelity National Information Services a buy? ›

Fidelity National Information Services has received a consensus rating of Buy.

Is Resn a good stock to buy? ›

If you are looking for stocks with good return, Resonant Inc stock can be a bad, high-risk 1-year investment option. Resonant Inc real time quote is equal to 4.480 USD at 2022-09-05, but your current investment may be devalued in the future. Get It Now!

What is a hedge fund simple explanation? ›

A hedge fund is a limited partnership of private investors whose money is managed by professional fund managers who use a wide range of strategies, including leveraging or trading of non-traditional assets, to earn above-average investment returns.

Do you believe hedge funds serve a useful purpose? ›

Hedge funds offer some worthwhile benefits over traditional investment funds. Some notable benefits of hedge funds include: Investment strategies that can generate positive returns in both rising and falling equity and bond markets. The reduction of overall portfolio risk and volatility in balanced portfolios.

Do hedge funds actually make money? ›

Key Takeaways

Hedge funds seem to rake in billions of dollars a year for their professional investment acumen and portfolio management across a range of strategies. Hedge funds make money as part of a fee structure paid by fund investors based on assets under management (AUM).

Who owns the biggest hedge fund in the world? ›

Dalio founded Bridgewater, considered the world's biggest hedge fund, in 1975. The fund currently has about $150 billion in assets under management.

What is an example of a hedge fund? ›

Some examples of hedge funds include names like Munoth Hedge Fund, Forefront Alternative Investment Trust, Quant First Alternative Investment Trust and IIFL Opportunities Fund. There are others such as Singlar India Opportunities Trust, Motilal Oswal's offshore hedge fund and India Zen Fund.

Are hedge funds successful? ›

Indeed, at their peak, hedge funds as a group have been unbelievably successful. It has been common for hedge funds in periods of success to generate returns in the double digits each year, far outpacing benchmarks like the S&P 500.

Which is better FIS or Fidelity? ›

Fidelity Investments is most highly rated for Compensation and benefits and FIS is most highly rated for Compensation and benefits.
Overall Rating.
Overall Rating4.03.4
Work/life balance3.93.3
Compensation and benefits4.03.4
Job security and advancement3.53.1
1 more row

Can Fidelity be trusted? ›

Fidelity is considered safe because it has a long track record and is regulated by top-tier financial authorities. You can open an account at Fidelity if you live in United States.

Why is Fidelity so successful? ›

Fidelity offers $0 trading commissions, a selection of more than 3,700 no-transaction-fee mutual funds and top-notch research tools and trading platform. Its zero-fee index funds and strong customer service reputation are just icing on the cake.

What are the benefits of hedge funds? ›

Hedge funds help protect investors from market volatility and downturns better than other investment benchmarks. towards fixed income assets to produce reliable returns and meet financial obligations.

Why are they called hedge funds? ›

Etymology. The word "hedge", meaning a line of bushes around the perimeter of a field, has long been used as a metaphor for placing limits on risk. Early hedge funds sought to hedge specific investments against general market fluctuations by shorting the market, hence the name.

Whats the difference between a fund and a hedge fund? ›

Mutual funds are regulated investment products offered to the public and available for daily trading. Hedge funds are private investments that are only available to accredited investors. Hedge funds are known for using higher risk investing strategies with the goal of achieving higher returns for their investors.

Is Power Grid share a good buy? ›

The Price Trend analysis by MoneyWorks4Me indicates it is Semi Strong which suggest that the price of Power Grid Corporation Of India Ltd is likely to Rise-somewhat in the short term. However, please check the rating on Quality and Valuation before investing.

Is snap on overvalued? ›

Moreover, SNAP stock is already quite overvalued at its current price. The intrinsic value is around 50% of the current price. In the worst-case scenario, SNAP is overvalued by 78%, and even in the best-case scenario, it is still overvalued by 8%.

Is ship stock a good buy? ›

The 3 analysts offering 12-month price forecasts for Seanergy Maritime Holdings Corp have a median target of 1.50, with a high estimate of 1.50 and a low estimate of 0.70. The median estimate represents a +217.19% increase from the last price of 0.47.

Does Fidelity sell your data? ›

Fidelity does not share or sell personal information about our customers with unaffiliated third parties for use in marketing their products and services.

Is Fdgrx a good buy? ›

Overall, Fidelity Growth Company ( FDGRX ) has a neutral Zacks Mutual Fund rank, and in conjunction with its comparatively strong performance, average downside risk, and lower fees, this fund looks like a somewhat average choice for investors right now.

Is FYI Resources a good buy? ›

FYI Resources Limited finds support from accumulated volume at A$0.16 and this level may hold a buying opportunity as an upwards reaction can be expected when the support is being tested. Our recommended stop-loss: A$0.16 (-3.74%) (This stock has low daily movements and this gives low risk.

Are Assura shares worth buying? ›

Assura has received a consensus rating of Buy.

Is PEI a good buy? ›

Pennsylvania Real Estate Investment Trust (NYSE:PEI)

The 1 analysts offering 12-month price forecasts for Pennsylvania Real Estate Investment Trust have a median target of 15.00, with a high estimate of 15.00 and a low estimate of 15.00. The median estimate represents a +328.57% increase from the last price of 3.50.

Is Znga undervalued? ›

Furthermore, our forecast indicates that Zynga's valuation is $14 per share, which is 40% above the current market price of around $10, implying that ZNGA stock is undervalued at its current levels.

Are hedge funds legal? ›

Are Hedge Funds Legal? Yes, they are legal.

What is the purpose of a hedge? ›

Hedging is an advanced risk management strategy that involves buying or selling an investment to potentially help reduce the risk of loss of an existing position.

What is hedge fund strategy? ›

Hedge fund strategies are a set of principles or instructions followed by a hedge fund in order to protect themselves against the movements of stocks or securities in the market and to make a profit on a very small working capital without risking the entire budget.

Do hedge funds help the economy? ›

Although some studies suggest that hedge funds can manipulate stock prices, the academic literature generally finds that hedge funds help financial markets by providing liquidity and improving price efficiency.

What are advantages and disadvantages of funds of hedge funds? ›

  • Aggressive Investment Strategies. One advantage to hedge funds is the aggressive strategies used by investors in order to get a high return. ...
  • Huge Gains. ...
  • Expert Advice. ...
  • Large Investment Fees. ...
  • Standard Deviation. ...
  • Downside Capture. ...
  • Drawdown. ...
  • Leverage.

Are hedge funds beneficial to society? ›

Hedge funds contribute large amounts to non-profit organizations each year that benefit society. This includes everything from organizations that benefit the homeless, children, world hunger, the arts and education.

Do hedge funds always win? ›

Strategies Used by Hedge Funds

Hedge funds have always had a significant failure rate. Some strategies, such as managed futures and short-only funds, typically have higher probabilities of failure given the risky nature of their business operations.

Do hedge funds actually hedge? ›

Hedging is the process in which some studies refer to as risk management. The reason is that hedging allows organisations like hedge funds to diversify their portfolios in order to reduce risk. If hedging is done properly organisations or investors can try and provide themselves with their own type of insurance.

How do hedge funds always make profit? ›

Hedge funds make money by charging management and performance fees.

Who is the largest hedge fund in the US? ›

The largest hedge fund in the U.S. is BlackRock, with a revenue of $19.374 billion. As of 2022, the U.S. hedge funds have a market size of $111.3 billion. There are at least 3,841 Hedge Funds in the U.S.

Does Bill Gates own a hedge fund? ›

The Bill & Melinda Gates Foundation Trust, a hedge fund controlled by Microsoft co-founder Bill Gates, his former wife Melinda Gates, and ace investor Warren Buffett, has been avoiding making a lot of additions to its portfolio this year.

Who makes the most money in hedge funds? ›

Jim Simons is back on top. For the fifth time in seven years, the 83-year-old founder of quant specialist Renaissance Technologies leads Institutional Investor's Rich List, the definitive ranking of the highest-earning hedge fund managers.

How much money is considered a hedge fund? ›

Typically, hedge funds are exempt from specific government regulations as outlined by the 1993 Securities Act. Consequently, hedge fund investors must have an overall net worth of at least $1 million and possess a sophisticated understanding of economics, finances, trading, and the market.

What type of risk is a hedge fund? ›

High-Risk. In general, hedge funds are considered to be high-risk investments because of the huge potential for money loss. Again, these funds are primarily controlled by hedge funds managers, and with pools of money going into investments, there is likely going to be some loss.

What is the most common type of hedge fund? ›

Perhaps the most common hedge fund strategy of them all is the long/short equity strategy. It's also one of the simplest to understand. The very first hedge fund initiated this strategy on the premise that when there are both expected winners and losers, there is an opportunity to profit off both.

What is the most successful hedge fund? ›

Top 10 of Global Investment Report's Top 50 Hedge Funds
Fund Name5-Year Annualized Net Returns through 2021 (%)
1Skye Global (West Palm Beach, FL) >49.66
2North Peak Capital Partners--Class E1 (New York)34.50
3Haidar Jupiter Composite (New York)32.07
4Atika Capital Partners (New York)31.00
6 more rows
25 Jul 2022

What is the biggest hedge fund in the world? ›

Bridgewater Associates

Bridgewater is the world's largest hedge fund, with about $150 billion in capital. Since its founding in 1975, Bridgewater has returned $52.2 billion in gains to its investors – more than any other hedge fund on the planet.

What happens if hedge funds fail? ›

First, the failure of a large fund (or a number with similar portfolios) could pose risks to banks and other creditors. If hedge funds had to liquidate a large market position quickly, prices could fall sharply, widening the circle of losses.

Who is Fidelity's biggest competitor? ›

Fidelity Investments's competitors
  • Brighthouse Financial.
  • Franklin Templeton.
  • Principal Financial Group.
  • Vanguard.
  • Voya Financial.
  • Legg Mason.
  • BlackRock.
  • TIAA.

Does Fidelity invest in private companies? ›

Fidelity invests in private businesses in the same way it might invest in a public one: It wants to buy a long-term holding at a good price with the hopes that it will appreciate over time. In many cases, a company's pre-IPO price is cheaper than its price after listing.

Is Fidelity better than Robin Hood? ›

After testing 15 of the best online brokers over six months, Fidelity (95.57%) is better than Robinhood (64.85%). Fidelity is a value-driven online broker offering $0 trades, industry-leading research, excellent trading tools, an easy-to-use mobile app, and comprehensive retirement services.

Does Fidelity have a fund that tracks the S&P 500? ›

Fidelity® 500 Index Fund is a diversified domestic large-cap equity strategy that seeks to closely track the returns and characteristics of the S&P 500® index. The S&P 500® is a market-capitalization-weighted index designed to measure the performance of 500 large-cap U.S. companies.

Who is a better company Vanguard or Fidelity? ›

Fidelity and Vanguard both do a good job keeping costs fairly low, but Fidelity has a slight edge overall. Both brokers charge zero commission for stock and ETF trades, but Fidelity charges $0.65 per contract on options trades, while Vanguard charges $1 per contract for customers with less than $1 million in assets.

Does Fidelity own Tesla? ›

The Fidelity funds have been steadily reducing their stake in Tesla since the end of 2016, when they reported owning a combined 22 million common shares, the equivalent of a 13.7% stake, according to filings with the Securities and Exchange Commission.

Is Fidelity owned by Amazon? ›

Amazon and Fidelity Investments are not affiliated.

Is Fidelity owned by Johnson and Johnson? ›

A new report from Bloomberg found that Fidelity CEO Abigail Johnson is now worth $21.5 billion, and the Johnson family, which owns nearly half of the company, is now worth $48 billion — a $6.2 billion bump.

Who is Fidelity owned by? ›

Abigail Johnson & family

Who owns the most shares in Fidelity? ›

Top 10 Owners of Fidelity National Financial Inc
StockholderStakeShares owned
The Vanguard Group, Inc.10.38%28,676,986
BlackRock Fund Advisors6.69%18,484,096
Brave Warrior Advisors LLC3.30%9,119,482
BlackRock Advisors LLC2.87%7,921,034
6 more rows

Which is better FIS or Fidelity? ›

Fidelity Investments is most highly rated for Compensation and benefits and FIS is most highly rated for Compensation and benefits.
Overall Rating.
Overall Rating4.03.4
Work/life balance3.93.3
Compensation and benefits4.03.4
Job security and advancement3.53.1
1 more row

Is Fidelity better than Goldman Sachs? ›

Fidelity Investments is most highly rated for Compensation and benefits and Goldman Sachs is most highly rated for Compensation and benefits.
Overall Rating.
Overall Rating4.04.0
4 more rows

Is Fidelity trusted? ›

Fidelity is a US stockbroker founded in 1946. It is regulated by top-tier authorities like the Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA). Fidelity is considered safe because it has a long track record and is regulated by top-tier financial authorities.

What kind of fund is FXAIX? ›

Fund Details
CategoryS&P 500 Index
Fund FamilyFidelity
Fund StatusOpen
Fund InceptionMay 4, 2011
ManagerTeam Managed
1 more row

Is FXAIX a good fund? ›

FXAIX posts returns that have historically outperformed its benchmark index, and it offers a 1.56% dividend yield that's pretty competitive.

Does Fidelity have its own funds? ›

Fidelity Freedom ® Funds, also called target date funds, are single-fund investment strategies that can help take the guesswork out of building and maintaining an age-based retirement portfolio.


1. Acquisition Announcement Prompts A Standard & Poor’s Outlook Revision On Fidelity National Informa
(S&P Global Ratings)
2. Fidelity National Information Services will present plans to build a $145-million dollar HQ
(First Coast News)
3. Fidelity National Financial Stock Analysis & Price Target: Growth, Dividend Growth, And Value!
4. Final Trades: FireEye, Teladoc Health, Fidelity National Information Services & more
(CNBC Television)
5. Worldpay from FIS and Wagestream Announce New Partnership
6. Digital transformation fuels FIS
(HPE Technology)
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