Baron Funds, an investment management firm, published its fourth quarter 2020 “Baron Asset Fund” investor letter – a copy of which can be downloaded here. A return of 15.14% was recorded by its Retail Shares, and 15.21% by its Institutional Shares in the fourth quarter of 2020, both below its Russell Midcap Growth Benchmark that delivered a 19.02% return but above its S&P 500 index that was up by 12.15% in the same period. You can view the fund’s top 5 holdings to have a peek at their top bets for 2021.
Baron Funds, in their Q4 2020 investor letter, mentioned Fidelity National Information Services, Inc. (NYSE: FIS) and emphasized their views on the company. Fidelity National Information Services, Inc. is a Jacksonville, Florida-based payment services provider that currently has an $87.69 billion market capitalization. Since the beginning of the year, FIS delivered a -0.20% return, but its 12-month gains are still up by 18.48%. As of March 22, 2021, the stock closed at $141.18 per share.
Here is what Baron Funds has to say about Fidelity National Information Services, Inc. in their Q4 2020 investor letter:
“Weakness in IT was largely due to share price declines from payment services provider Fidelity National Information Services, Inc. Fidelity National’s stock underperformed because of revenue headwinds from the pandemic as reduced travel and spending activity led to lower payment processing volumes. Management believes these headwinds are temporary and expects growth to accelerate next year.”
Our calculations show that Fidelity National Information Services, Inc. (NYSE: FIS) does not belong in our list of the 30 Most Popular Stocks Among Hedge Funds. As of the end of the fourth quarter of 2020, Fidelity National Information Services, Inc. was in 88 hedge fund portfolios. FIS delivered a 4.73% return in the past 3 months.
The top 10 stocks among hedge funds returned 231.2% between 2015 and 2020, and outperformed the S&P 500 Index ETFs by more than 126 percentage points. We know it sounds unbelievable. You have been dismissing our articles about top hedge fund stocks mostly because you were fed biased information by other media outlets about hedge funds’ poor performance. You could have doubled the size of your nest egg by investing in the top hedge fund stocks instead of dumb S&P 500 ETFs. Here you can watch our video about the top 5 hedge fund stocks right now. All of these stocks had positive returns in 2020.
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Disclosure: None. This article is originally published at Insider Monkey.
