The London Company Income Equity Portfolio Chose to Exit Fidelity National Information Services (FIS) in Q3

The London Company, an investment management company, released “The London Company Income Equity Strategy” third-quarter 2025 investor letter. A copy of the letter can be downloaded here. US equities continued their rally in the third quarter, driven by the Fed rate cut, solid corporate earnings, and enthusiasm around AI. In the third quarter, the portfolio appreciated 6.0% gross (5.8% net) compared to a 5.3% increase in the Russell 1000 Value Index. Positive stock section led the outperformance of the portfolio in the quarter, but was partially offset by sector exposure headwinds. Please review the fund’s top 5 holdings to gain insight into their key selections for 2025.

In its third-quarter 2025 investor letter, The London Company Income Equity 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 -7.31%, and its shares lost 26.94% of their value over the last 52 weeks. On November 4, 2025, Fidelity National Information Services, Inc. (NYSE:FIS) stock closed at $63.15 per share, with a market capitalization of $32.988 billion.

The London Company Income Equity Strategy stated the following regarding Fidelity National Information Services, Inc. (NYSE:FIS) in its third quarter 2025 investor letter:

“Fidelity National Information Services, Inc. (NYSE:FIS) – FIS underperformed in the quarter mainly due to inconsistent execution and a weaker outlook that requires an acceleration later this year. The company’s strong market position and recurring revenue base hold true, but there is now additional execution risk. Given these factors and our sizeable financial exposure, we chose to sell the position to fund higher conviction ideas within the portfolio.”

Fidelity National Information Services, Inc. (FIS): Among Billionaire Mason Hawkins’ Mid-Cap Stocks with Huge Upside Potential

Fidelity National Information Services, Inc. (NYSE:FIS) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 49 hedge fund portfolios held Fidelity National Information Services, Inc. (NYSE:FIS) at the end of the second quarter, up from 56 in the previous quarter. While we acknowledge the risk and potential of Fidelity National Information Services, Inc. (NYSE:FIS) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than Fidelity National Information Services, Inc. (NYSE:FIS) and that has 10,000% upside potential, check out our report about this cheapest AI stock.

In another article, we covered Fidelity National Information Services, Inc. (NYSE:FIS) and shared Longleaf Partners Fund’s views on the company. 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.