Like everyone else, elite investors make mistakes. Some of their top consensus picks, such as Micron and Anadarko Petroleum, have not done well during the last 12 months ending in October due to various reasons. Nevertheless, the data show elite investors’ consensus picks have done well on average. The top 30 S&P 500 stocks among hedge funds at the end of September 2014 yielded an average return of 9.5% during the last four quarters ending in October and sixty three percent of these 30 stocks outperformed the market. S&P 500 Index returned only 5.2% during the same period and less than 49% of its constituents managed to beat this return. Because their consensus picks have done well, we pay attention to what elite funds think before doing extensive research on a stock. In this article, we take a closer look at Fidelity National Information Services (NYSE:FIS) from the perspective of those elite funds.
Hedge fund interest in Fidelity National Information Services (NYSE:FIS) shares was flat at the end of last quarter. This is usually a negative indicator. The level and the change in hedge fund popularity aren’t the only variables you need to analyze to decipher hedge funds’ perspectives. A stock may witness a boost in popularity, but it may still be less popular than similarly priced stocks. That’s why at the end of this article we will examine companies such as Ventas, Inc. (NYSE:VTR), PACCAR Inc (NASDAQ:PCAR), and Western Digital Corp. (NASDAQ:WDC) to gather more data points.
In the 21st century investor’s toolkit there are plenty of tools stock traders have at their disposal to value stocks. Two of the most underrated tools are hedge fund and insider trading indicators. Our researchers have shown that, historically, those who follow the top picks of the elite money managers can outpace their index-focused peers by a very impressive margin (see the details here).
With all of this in mind, let’s take a gander at the latest action regarding Fidelity National Information Services (NYSE:FIS).
Hedge fund activity in Fidelity National Information Services (NYSE:FIS)
At the end of the third quarter, a total of 34 of the hedge funds tracked by Insider Monkey held long positions in this stock, unchanged from the second quarter. With the smart money’s sentiment swirling, there exists a few key hedge fund managers who were boosting their holdings considerably (or already accumulated large positions).
When looking at the institutional investors followed by Insider Monkey, William von Mueffling’s Cantillon Capital Management has the biggest position in Fidelity National Information Services (NYSE:FIS), worth close to $540.6 million, corresponding to 11.5% of its total 13F portfolio. On Cantillon Capital Management’s heels is Scott Ferguson of Sachem Head Capital, with a $206.9 million position; 9.3% of its 13F portfolio is allocated to the stock. Other professional money managers with similar optimism contain Ken Griffin’s Citadel Investment Group, Cliff Asness’s AQR Capital Management and Israel Englander’s Millennium Management.