Patient Capital Management, a value investing firm, released its “Patient Opportunity Equity Strategy” fourth-quarter 2025 investor letter. A copy of the letter can be downloaded here. In Q4 2025, Patient Opportunity Equity Strategy returned 5.99% net of fees, compared to its unmanaged benchmark, the S&P 500 Index, which returned 2.65%. Through a three-factor performance attribution model, the portfolio’s outperformance was attributed to allocation, selection, and interaction effects. The market ended a strong year with 17.9% returns, marking the seventh-best three-year period in market history. 2025 was a year of AI, extending the benefits to hardware, energy, and component suppliers across the ecosystem. Seven stocks accounted for over half of the S&P 500’s returns, posing difficulties for active managers. Nevertheless, the strategy performed well, outperforming the S&P 500 for the third consecutive year with a return of 26.1%. Please review the Strategy’s top five holdings to gain insights into their key selections for 2025.
In its fourth-quarter 2025 investor letter, Patient Opportunity Equity Strategy stocks like Fiserv, Inc. (NASDAQ:FISV). Fiserv, Inc. (NASDAQ:FISV) is an American financial technology company that provides technology services and solutions. On March 04, 2026, Fiserv, Inc. (NASDAQ:FISV) stock closed at $62.60 per share. One-month return of Fiserv, Inc. (NASDAQ:FISV) was 7.12%, and its shares lost 73.40% over the past twelve months. Fiserv, Inc. (NASDAQ:FISV) has a market capitalization of $71.54 billion.
Patient Opportunity Equity Strategy stated the following regarding Fiserv, Inc. (NASDAQ:FISV) in its fourth quarter 2025 investor letter:
“We built up a small position in Fiserv, Inc. (NASDAQ:FISV), a name we know well, as the company traded down from its peak in early March as topline growth disappointed. Fiserv is a name we previously owned and exited successfully in late 2024. The company is a leader in the payments space, and our original investment was based on the belief that the market was underappreciating its ability to continue gaining share while improving margins. We think today’s pullback has created a similar setup. Following the appointment of a new CEO, a complete reset of guidance, and a renewed focus on a client-first culture, we believe the company is well positioned to rebuild investor confidence and return to delivering double-digit EPS growth by 2027.
Fiserv Inc. (FI) was a top detractor during the quarter following a significant reset under the company’s new CEO. Shortly after taking the helm, management lowered full-year earnings guidance and announced a broad overhaul of its board and senior leadership team as part of a comprehensive reassessment of the business. This led to a sharp market reaction and several sell-side downgrades. While the magnitude of the guidance reduction weighed heavily on near-term sentiment, we continue to believe Fiserv is a leader in the payments space with a scaled, mission-critical platform and deeply embedded customer relationships. As the company works through the reset and reorients the organization around a client-first culture, we believe Fiserv remains well positioned to rebuild investor confidence, resume share gains, and return to delivering double-digit EPS growth by 2027.”
Fiserv, Inc. (NASDAQ:FISV) is not on our list of 40 Most Popular Stocks Among Hedge Funds. According to our database, 83 hedge fund portfolios held Fiserv, Inc. (NASDAQ:FISV) at the end of the fourth quarter, compared to 83 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 best information technology services 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.
