What makes Fiserv (FI) a Wonderful Stock?

Investment management company Vulcan Value Partners recently released its third-quarter 2025 investor letter. A copy of the letter can be downloaded here. The third quarter was a good one for the portfolios. The absolute performance was positive across all the strategies, while the relative performance lagged. In the quarter, the Large Cap Composite returned 4.6% net of fees and expenses, the Small Cap Composite returned 4.1% net, the Focus Composite returned 3.7% net, the Focus Plus composite returned 3.7% and the All-Cap Composite returned 5.5% net. For more information on the fund’s best picks in 2025, please check its top five holdings.

In its third-quarter 2025 investor letter, Vulcan Value Partners highlighted stocks such as Fiserv, Inc. (NYSE:FI). Fiserv, Inc. (NYSE:FI) is a leading financial technology company that provides payment and fintech services. The one-month return of Fiserv, Inc. (NYSE:FI) was -8.85%, and its shares lost 38.13% of their value over the last 52 weeks. On October 15, 2025, Fiserv, Inc. (NYSE:FI) stock closed at $121.11 per share, with a market capitalization of $65.83 billion.

Vulcan Value Partners stated the following regarding Fiserv, Inc. (NYSE:FI) in its third quarter 2025 investor letter:

“We purchased one new position during the quarter: Fiserv, Inc. (NYSE:FI). Fiserv Inc. is a company we have successfully owned multiple times in the past. It is a global payments solutions and financial services provider. The business consists of two segments: merchant solutions and financial solutions. Each of these segments provides essential products and services to its customers. Fiserv’s products have high switching costs, which aids in customer retention and increases the stickiness of their revenue. The company expects to generate over $5 billion of free cash flow this year. The company is using its free cash flow to repurchase its discounted shares, which increases our value per share growth. Fiserv stock has declined meaningfully since we sold it earlier this year. Our value has remained stable. We are pleased to be able to own this wonderful business with a substantial margin of safety once again.”

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, up from 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 the list of stocks to buy according to billionaire Ray Dalio’s Bridgewater Associates. Vltava Fund also established a position in Fiserv, Inc. (NYSE:FI) during Q3 2025. In addition, please check out our hedge fund investor letters Q3 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.