Java 1.8 compilation fails when lambda is passed to a generic argument

The following piece of code fails to be instrumented

public class Fails<N> {

    public final <S extends N> Iterable<S> depthFirstTraversal(Class<S> type) {
        return (Iterable<S>) depthFirstTraversal(e -> type.isInstance(e));
    }

    public final Iterable<N> depthFirstTraversal(Predicate<? super N> predicate) {
        return null;
    }
}

Javac gives the following error message:

[ERROR] Failed to execute goal org.apache.maven.plugins:maven-compiler-plugin:3.1:compile (default-compile) on project cake-util: Compilation failure: Compilation failure:
[ERROR] /Users/kasperni/workspace/CAKE/cake-util/cake-util/target/clover/src-instrumented/org/cakeframework/internal/util/tree/Fails.java:[27,67] reference to depthFirstTraversal is ambiguous
[ERROR] both method <S>depthFirstTraversal(java.lang.Class<S>) in org.cakeframework.internal.util.tree.Fails and method depthFirstTraversal(java.util.function.Predicate<? super N>) in org.cakeframework.internal.util.tree.Fails match
[ERROR] /Users/kasperni/workspace/CAKE/cake-util/cake-util/target/clover/src-instrumented/org/cakeframework/internal/util/tree/Fails.java:[27,86] incompatible types: cannot infer type-variable(s) I,T
[ERROR] (argument mismatch; java.lang.Class is not a functional interface)
[ERROR] -> [Help 1]