Mairs & Power, an investment advisor, released the fourth-quarter 2025 investor letter for the “Mairs & Power Growth Fund.” A copy of the letter is available for download here. In 2025, artificial intelligence (AI) and market concentration dominated the market. Increased investment in technology and AI infrastructure drove rising valuations and corporate spending, leading to bubble-like tendencies. However, easing inflation, a Federal Reserve rate cut in Q4, and resilient corporate earnings provided some optimism. In this environment, the fund underperformed both the S&P 500 Total Return (TR) and its peer group, the Morningstar Large Blend index, with a 10.54% gain compared to 17.88% and 15.55%, respectively, for the indexes. In 2025, stock selection proved challenging, though it has traditionally yielded favorable long-term results for shareholders. In addition, please check the Fund’s top five holdings to know its best picks in 2025.
In its fourth-quarter 2025 investor letter, Mairs & Power Growth Fund highlighted stocks like Fiserv, Inc. (NASDAQ:FISV). Fiserv, Inc. (NASDAQ:FISV) is an American financial technology company that provides technology services and solutions. On April 2, 2026, Fiserv, Inc. (NASDAQ:FISV) stock closed at $56.16 per share. One-month return of Fiserv, Inc. (NASDAQ:FISV) was -11.00%, and its shares lost 71.72% over the past 52 weeks. Fiserv, Inc. (NASDAQ:FISV) has a market capitalization of $30.03 billion.
Mairs & Power Growth Fund stated the following regarding Fiserv, Inc. (NASDAQ:FISV) in its fourth quarter 2025 investor letter:
“While stock selection has historically delivered positive long-term results for our shareholders, it was a notable headwind in 2025, with Fiserv, Inc. (NASDAQ:FISV) and UnitedHealth Group (UNH) standing out as prominent detractors from relative performance. Despite their recent pullbacks, both positions remain substantial long-term winners, appreciating more than 300% and 100%, respectively, since our initial investments.
Both companies experienced significant execution missteps that ultimately resulted in weaker-than-expected reported fundamentals. Prior to the deterioration in reported results, Fiserv announced an unexpected CEO departure, which is always a red flag. Although we had been trimming these positions due to stretched valuations and growing concerns around leadership uncertainty, in hindsight we should have acted more decisively in reducing our exposure to these names.
That said, we believe the challenges at both companies are largely self-inflicted operational issues rather than structural impairments to their franchises. In short, the problems appear fixable but will take time to resolve. We are therefore comfortable maintaining our current positions and believe patient capital will ultimately be rewarded as execution improves…” (Click here to read the full text)
Fiserv, Inc. (NASDAQ:FISV) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 83 hedge fund portfolios held Fiserv, Inc. (NASDAQ:FISV) at the end of the fourth quarter, the same as in the previous quarter. While we acknowledge the risk and potential of Fiserv, Inc. (NASDAQ:FISV) 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 Fiserv, Inc. (NASDAQ:FISV) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered Fiserv, Inc. (NASDAQ:FISV) and shared the list of most undervalued value stocks to buy. In addition, please check out our hedge fund investor letters Q4 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.
