Diamond Hill Capital, an investment management company, released its “Mid Cap Strategy” first-quarter 2023 investor letter. A copy of the same can be downloaded here. The overweight exposure to the financials sector led the strategy to underperform the Russell Midcap Index in the quarter while industrials and select energy holdings contributed to the relative performance. The strategy returned -2.00% compared to the Russell Midcap Index’s 4.06% return. In addition, you can check the top 5 holdings of the strategy to know its best picks in 2023.
Diamond Hill Mid Cap Strategy highlighted stocks like Fidelity National Information Services, Inc. (NYSE:FIS) in the first quarter 2023 investor letter. Headquartered in Jacksonville, Florida, Fidelity National Information Services, Inc. (NYSE:FIS) is a financial technology solutions provider. On May 16, 2023, Fidelity National Information Services, Inc. (NYSE:FIS) stock closed at $54.91 per share. One-month return of Fidelity National Information Services, Inc. (NYSE:FIS) was -1.96%, and its shares lost 43.23% of their value over the last 52 weeks. Fidelity National Information Services, Inc. (NYSE:FIS) has a market capitalization of $32.531 billion.
Diamond Hill Mid Cap Strategy made the following comment about Fidelity National Information Services, Inc. (NYSE:FIS) in its Q1 2023 investor letter:
“As is often the case, market volatility offers unique opportunities to shift the portfolio, capitalizing on valuations to introduce new holdings which we believe will offer attractive long-term returns. Accordingly, we capitalized on Q1’s choppiness to initiate positions in Arrow Electronics, Allstate, Stifel Financial and Fidelity National Information Services, Inc. (NYSE:FIS).
Fidelity National Information Services (FIS) provides technology solutions to financial institutions and businesses globally. It acquired Worldpay, a merchant payments business, in 2019 — a combination which initially excited investors but ultimately proved a disappointment as Worldpay’s large business underperformed, weighing on FIS. In 2022, activist shareholders convinced FIS to announce its intention to spin off Worldpay, leaving FIS with a collection of leading bank and capital markets technology outsourcing businesses, which today represent two-thirds of FIS’s total revenue. Though FIS may be impacted in the near term by recent headwinds in the financials industry overall, the business has historically proven relatively resilient — including during the global financial crisis. We find the current valuation attractive and not reflective of the business’s underlying value and therefore capitalized on the opportunity to initiate a position.”
Fidelity National Information Services, Inc. (NYSE:FIS) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 64 hedge fund portfolios held Fidelity National Information Services, Inc. (NYSE:FIS) at the end of the fourth quarter which was 60 in the previous quarter.
We discussed Fidelity National Information Services, Inc. (NYSE:FIS) in another article and shared Baron Funds’ views on the company. In addition, please check out our hedge fund investor letters Q1 2023 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.