Is Fidelity National Information Services (FIS) A Great Long-Term Buy?

Baron Funds, an asset management firm, published its “Baron FinTech Fund” third quarter 2021 investor letter – a copy of which can be downloaded here. A return of 2.65% was delivered by the fund’s institutional shares for the third quarter of 2021, compared to the S&P 500 Index, which appreciated 0.58%, and the FactSet Global FinTech Index which rose 3.72% for the same period. You can take a look at the fund’s top 5 holdings to have an idea about their best picks for 2021.

Baron FinTech Fund, in its Q3 2021 investor letter, mentioned Fidelity National Information Services, Inc. (NYSE: FIS) and discussed its stance on the firm. Fidelity National Information Services, Inc. is a Jacksonville, Florida-based financial services company with a $64.3 billion market capitalization. FIS delivered a -25.26% return since the beginning of the year, while its 12-month returns are down by -28.21%. The stock closed at $105.73 per share on December 02, 2021.

Here is what Baron FinTech Fund has to say about Fidelity National Information Services, Inc.  in its Q3 2021 investor letter:

“Fidelity National Information Services, Inc. provides software to financial institutions and enables merchants to accept electronic payments. The company reported solid quarterly financial results that exceeded expectations and raised annual guidance for revenue and earnings. However, the stock fell due to concerns that Fidelity National’s legacy technology is losing market share to newer competitors with more modern technology. We believe these concerns are overblown and that Fidelity National remains well positioned to grow revenues organically at a high single-digit rate and earnings at a double-digit rate over time.”

Photo by DocuSign on Unsplash

Based on our calculations, Fidelity National Information Services, Inc. (NYSE: FIS) was not able to clinch a spot in our list of the 30 Most Popular Stocks Among Hedge Funds. FIS was in 69 hedge fund portfolios at the end of the third quarter of 2021, compared to 72 funds in the previous quarter. Fidelity National Information Services, Inc. (NYSE: FIS) delivered a -16.66% return in the past 3 months.

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