Billionaire Andreas Halvorsen’s Top 5 Stock Picks

3. Fidelity National Information Services, Inc. (NYSE:FIS)

Fidelity National Information Services, Inc. (NYSE: FIS) is the third-largest stock holding of Viking Global Investors 13F portfolio, accounting for 4.70%. The firm has raised its position by 32% in Fidelity National during the September quarter.

Other hedge funds are also optimistic about Fidelity. For instance, Artisan Mid Cap Fund claimed in an investor’s letter that Fidelity National has a strong business model and it has the potential to face short-term volatility. Here is what Artisan Mid Cap Fund stated:  

“Fidelity National Information Services has benefited from regional banks’ outsourcing their core banking systems, and more recently, the company won its first outsourcing deals with top banks in the US and Japan. We believe this could be a broader effort by larger banks to outsource their core systems, creating a meaningful opportunity for Fidelity National to accelerate its revenue growth. Furthermore, the company recently indicated its merger with Worldpay is going better than planned and raised its synergy expectations. While we believe the profit cycle remains very compelling, the company’s market cap has grown to the limit of our mid-cap mandate, and we began harvesting our position at the beginning of the quarter as our successful campaign matures. Shares have since come under pressure due to concerns that Fidelity National—like Global Payments—faces a difficult short-term environment for payment volumes. We expect Fidelity National’s earnings overall will prove relatively resilient despite these pressures and thus paused our sales.”