Boutique investment firm Broyhill Asset Management has released its fourth quarter 2023 investor letter. You can download a copy of the same here. The past two years have been a mirror image for stock investors. Global stocks fell 18% last year, but rose 22% in 2022. Portfolio activity was very strong in the fourth quarter. Broyhill's fully invested managed funds have underperformed broad equity benchmarks year-over-year, but have avoided problems during the 2021 and 2022 declines, and their relative performance remains better than any long-term period. much higher. Additionally, you can check out the fund's top five holdings to learn about the best stocks for 2023.
Broyhill Asset Management highlighted stocks such as Fidelity National Information Services (NYSE:FIS) in its Q4 2023 Investor Letter. Fidelity National Information Services, Inc. (NYSE:FIS) is a financial technology solutions provider headquartered in Jacksonville, Florida. On February 16, 2024, Fidelity National Information Services, Inc. (NYSE:FIS) stock closed at $63.65 per share. Fidelity National Information Services, Inc. (NYSE:FIS)'s 1-month return is 6.33%, and the company's stock has lost 8.42% of its value over the past 52 weeks. Fidelity National Information Services, Inc. (NYSE:FIS) has a market capitalization of $37.712 billion.
In its Q4 2023 investor letter, Broyhill Asset Management said of Fidelity National Information Services, Inc. (NYSE:FIS):
“Recent investments in this space include Ball Corp. Fidelity National Information Services Co., Ltd. (NYSE:FIS), and Avantar. Fidelity National Information Services is a payments provider for financial institutions and merchants around the world. Around the time we established our investment in Fiserv, we took a thorough look at the business. This is explained in more detail here. Thankfully, at that point we decided to pass in favor of a business that we believed had a much better track record of execution and was more competitive. Since then, FIS's problems have only gotten worse. Its $48 billion acquisition of Worldpay in 2019, which leveraged up to 5.5x leverage on its balance sheet, did not yield the same results as Fiserv's acquisition of First Data. Fast forward to today, FIS has reversed their earlier mistakes and sold a 55% interest in a recently acquired business (which means they now have hard numbers on the remaining 45% they own) ), and uses the proceeds to bring the leverage back to 2.5. x After the transaction closes, we will repurchase at least $3.5 billion in stock through next year. As a result, shareholders are left with a cleaner balance sheet and a simpler organizational structure, consisting primarily of a highly defensive and highly profitable core banking business whose trading is below the historical industry average. This will result in a decline to a single-digit multiple of nearly 20 times. . ”
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Fidelity National Information Services, Inc. (NYSE:FIS) isn't on the list of 30 most popular stocks among hedge funds. According to our database, Fidelity National Information Services (NYSE:FIS) was held by 66 hedge fund portfolios at the end of the fourth quarter, up from 55 at the prior quarter.
We covered Fidelity National Information Services, Inc. (NYSE:FIS) in a separate article and shared Weitz Investment Management's views on the company. Additionally, for investor letters from hedge funds and other leading investors, please visit our Hedge Fund Investor Letters Q4 2023 page.
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Disclosure: None. This article was originally published on Insider Monkey.
