Here’s What Hit Fiserv (FISV) in Q4

Hotchkis & Wiley, an investment management company, released its fourth-quarter 2025 investor letter for the “Hotchkis & Wiley Large Cap Disciplined Value Fund.” A copy of the letter can be downloaded here. In Q4 2025, the S&P 500 returned 2.7%, bringing its yearly gains to 17.9%. Since the 2007-08 financial crisis, the Index has increased tenfold, achieving positive results in 15 of 17 years. However, high valuations have made investors cautious, particularly with the returns concentrated in a few stocks. Excluding the “Magnificent 7,” the forward PE of the S&P 500 Index aligns with historical averages. In 2025, information technology and communication services led performance, but results varied significantly within those sectors. The firm views the potential of certain software companies to be very attractive. In this environment, the Fund outperformed the Russell 1000 Value Index both in Q4 and over the full calendar year. Positive stock selection contributed to the Fund’s relative performance. Please review the Fund’s top 5 holdings to gain insight into their key selections for 2025.

In its fourth-quarter 2025 investor letter, Hotchkis & Wiley Large Cap Disciplined Value Fund highlighted Fiserv, Inc. (NASDAQ:FISV) as one of its leading detractors. Fiserv, Inc. (NASDAQ:FISV) is a leading financial technology company that provides payment and fintech services. The one-month return of Fiserv, Inc. (NASDAQ:FISV) was -3.29%, and its shares lost 70.64% of their value over the last 52 weeks. On January 29, 2026, Fiserv, Inc. (NASDAQ:FISV) stock closed at $63.43 per share, with a market capitalization of $34.48 billion.

Hotchkis & Wiley Large Cap Disciplined Value Fund stated the following regarding Fiserv, Inc. (NASDAQ:FISV) in its fourth quarter 2025 investor letter:

“Fiserv, Inc. (NASDAQ:FISV is a financial technology company that provides payments and other solutions to merchants and financial institutions. The company’s scale, diversification, and ability to compound earnings at a double-digit rate make current valuation attractive. There was a sharp reset in Q3, with the FY25 outlook cut materially after a large miss versus expectations concentrated in the Financial Solutions segment, where both topline growth and profitability disappointed. While 2026 guidance has not been formally introduced, the new CEO framed FY26 as a transition year that resets the long-term growth algorithm to a lower baseline. Once earnings stabilize, we believe Fiserv offers a combination of strong topline growth, margin expansion, and cash generation.”

In another article, we covered Fiserv, Inc. (NASDAQ:FISV) and shared Vulcan Value Partners’ views on the company. 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.