Here’s Why Diamond Hill Mid-Cap Strategy Sold Fidelity National Information Services. (FIS)

Diamond Hill Capital, an investment management company, released its “Mid Cap Strategy” third-quarter 2025 investor letter. A copy of the letter can be downloaded here. Markets continued their rally in the third quarter, with US stocks gaining over 8% as measured by the Russell 3000 Index. Small-cap stocks experienced the strongest quarterly performance, rising by more than 12%, whereas large-cap stocks increased by about 8%, and mid-cap stocks saw a gain of 5%. The strategy underperformed the Russell Midcap Index in the third quarter, returning 4.49% net vs. 5.33% for the Index. For more information on the fund’s top picks in 2025, please check its top five holdings.

In its third-quarter 2025 investor letter, Diamond Hill Mid Cap Strategy highlighted stocks such as Fidelity National Information Services Inc. (NYSE:FIS). Fidelity National Information Services, Inc. (NYSE:FIS) is a leading provider of financial technology solutions for financial institutions, businesses, and developers. The one-month return of Fidelity National Information Services, Inc. (NYSE:FIS) was 0.55%, and its shares lost 16.84% of their value over the last 52 weeks. On December 30, 2025, Fidelity National Information Services, Inc. (NYSE:FIS) stock closed at $67.17 per share, with a market capitalization of $35.088 billion.

Diamond Hill Mid Cap Strategy stated the following regarding Fidelity National Information Services, Inc. (NYSE:FIS) in its third quarter 2025 investor letter:

“Other bottom Q3 contributors included GoDaddy, Freeport McMoRan and Fidelity National Information Services, Inc. (NYSE:FIS). Shares of financial services technology company Fidelity National Information Services were pressured as revenue growth slowed, and the company made little progress toward improving free cash flow conversion. We exited our position in the quarter given our concerns about the company’s longer-term prospects for growth in a changing bank technology environment and as management’s ability to execute has become questionable.”

In another article, we covered Fidelity National Information Services, Inc. (NYSE:FIS) and shared the list of best fintech stocks to buy in 2026. Fidelity National Information Services, Inc. (NYSE:FIS) was the largest detractor of PBCM Concentrated Value Strategy’s performance in Q3 2025. In addition, please check out our hedge fund investor letters Q3 2025 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.