Here’s Why Fiserv (FI) Traded Down in Q2

Baron Funds, an investment management company, released its “Baron FinTech Fund” second quarter 2025 investor letter. A copy of the letter can be downloaded here. In the second quarter, the fund returned 9.26% (Institutional Shares) compared to a 13.82% return for the FactSet Global FinTech Index (Benchmark). Since its inception, the fund has appreciated at an annualized rate of 12.53%, compared to a 4.55% return for the Benchmark. The fund managed gains in a period of heightened volatility. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its second-quarter 2025 investor letter, Baron FinTech Fund highlighted stocks such as Fiserv, Inc. (NYSE:FI). Fiserv, Inc. (NYSE:FI) is a payment and fintech services provider. The one-month return of Fiserv, Inc. (NYSE:FI) was -3.68%, and its shares lost 19.34% of their value over the last 52 weeks. On August 25, 2025, Fiserv, Inc. (NYSE:FI) stock closed at $137.26 per share with a market capitalization of $74.614 billion.

Baron FinTech Fund stated the following regarding Fiserv, Inc. (NYSE:FI) in its second quarter 2025 investor letter:

“Global payments company Fiserv, Inc. (NYSE:FI) detracted from performance after reporting weaker-than-expected earnings results and slower payment volume growth from its important Clover product. Clover enables small businesses to accept payments and manage operations through integrated software, hardware, and capital offerings, making it more comprehensive than a standard payment acceptance service. While Clover’s revenue grew at a healthy 20% rate, investors were concerned that the deceleration in payment volume signaled rising competitive pressures. Challenging year over-year comparisons and the timing of Easter played a role, but management did not clearly address these dynamics, which added to investor unease. Despite softer volumes, we believe Clover remains well positioned, supported by channel checks that indicate strong customer satisfaction and appropriate pricing. We expect Clover to continue gaining market share and Fiserv to compound EPS at a double-digit rate over many years.”

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A businessman at a smart POS terminal, demonstrating contactless payment methods.

Fiserv, Inc. (NYSE:FI) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 94 hedge fund portfolios held Fiserv, Inc. (NYSE:FI) at the end of the second quarter, which was 72 in the previous quarter. In the second quarter of 2025, Fiserv, Inc.’s (NYSE:FI) adjusted revenue grew 8% to $5.2 billion. While we acknowledge the risk and potential of Fiserv, Inc. (NYSE:FI) 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. (NYSE:FI) and that has 10,000% upside potential, check out our report about this cheapest AI stock.

In another article, we covered Fiserv, Inc. (NYSE:FI) and shared GreensKeeper Asset Management’s views on the company. In addition, please check out our hedge fund investor letters Q2 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.