Here's Why Giverny Capital Asset Management Sold Fiserv (FISV) in 2025

Giverny Capital Asset Management, LLC, an investment management company, recently published its fourth-quarter 2025 investor letter. A copy of the same can be downloaded here. The Portfolio returned 0.01% compared to 2.66% for the S&P 500. YTD, the fund returned 12.58% compared to 17.88% for the Index. The firm faced a challenging fourth quarter and calendar year, despite solid appreciation. The outperformance of a few large technology companies has negatively impacted performance, given the portfolio's underweight in large tech and overweight in smaller niche leaders. While portfolio companies are excelling in earnings growth and capital returns, the market is fixated on AI investments, leaving the actual benefits unclear. Additionally, you can review the Portfolio’s top 5 holdings to see its best picks for 2025.

In its fourth-quarter 2025 investor letter, Giverny Capital Asset Management highlighted Fiserv, Inc. (NASDAQ:FISV), which it exited during the year. 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.

Giverny Capital Asset Management stated the following regarding Fiserv, Inc. (NASDAQ:FISV) in its fourth quarter 2025 investor letter:

"In the fourth quarter we exited CarMax, Fiserv, Inc. (NASDAQ:FISV) and Align Technology. Fiserv: We exited in late October, shortly before Fiserv blew up, but I’m embarrassed that I didn’t sell it earlier. Fiserv’s former CEO Frank Bisignano abruptly quit earlier this year to take a job as Commissioner of Social Security in the Trump administration, saying he felt the call to serve his country. In hindsight, he also may have felt the call to sell all his stock in Fiserv with long-term tax deferrals, a perk of taking a federal government job. Even at the time, I felt the decision made no sense. If Fiserv was a great business with a bright future, Bisignano stood to earn a vast(er) fortune over time. Instead, he sold more than $500 million of stock at prices above $200 per share to take a faceless position in government.

Could it be that Bisignano left because he had an inkling the future would be rough? Fiserv’s stock plunged in the fall after a new CEO said Bisignano’s team had issued overly optimistic earnings guidance while underinvesting in technology. We had sold our shares at about $125 before this news hit. Fiserv ended the year at $67."

Fiserv, Inc. (NASDAQ:FISV) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 83 hedge fund portfolios held Fiserv, Inc. (NASDAQ:FISV) at the end of the third quarter, which was 94 in the previous quarter. While we acknowledge the potential of Fiserv, Inc. (NASDAQ:FISV) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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.