Here’s Why Diamond Hill Mid-Cap Strategy Sold Fidelity National Information Services. (FIS)

Core Insights - Diamond Hill Capital's "Mid Cap Strategy" underperformed the Russell Midcap Index in Q3 2025, returning 4.49% net compared to the Index's 5.33% [1] - The overall market saw US stocks gain over 8% in Q3, with small-cap stocks leading at over 12% growth [1] Company Performance - Fidelity National Information Services Inc. (NYSE:FIS) experienced a one-month return of 0.55% but lost 16.84% over the last 52 weeks, closing at $67.17 per share with a market capitalization of $35.088 billion on December 30, 2025 [2] - The company faced pressure on its stock due to slowed revenue growth and minimal progress in improving free cash flow conversion, leading to Diamond Hill Capital exiting its position in FIS during the quarter [3] Hedge Fund Interest - Fidelity National Information Services Inc. was held by 57 hedge fund portfolios at the end of Q3, an increase from 49 in the previous quarter, indicating growing interest despite its challenges [4] - While FIS is recognized for its potential, the company is not among the 30 most popular stocks among hedge funds, with some analysts suggesting that certain AI stocks may offer better upside potential with less downside risk [4]