Matrix Asset Management Sold Fiserv (FISV) Following an Unexpected Earnings Miss

Matrix Asset Advisors, an asset management company, released its Q4 2025 investor letter. A copy of the letter can be downloaded here. The stock market hit a new all-time high in the fourth quarter of 2025, rising +2.66%. Three-quarter-point interest rate cuts from the Federal Reserve, strong corporate results, and ongoing AI momentum drove investor optimism. The S&P 500 Index recorded its third consecutive year of double-digit gains, returning +17.88% in 2025. Matrix’s equity portfolios returned double-digit gains in 2025 and positive results in the fourth quarter. Matrix’s Large Cap Value portfolio (LCV) returned 20% in 2025, outperforming the S&P 500 Index. Matrix’s fixed income returns, except long-term bonds, were slightly positive in the fourth quarter, and for the year, the returns were up in the mid to high single-digit range, depending on maturity. Entering 2026, the firm maintains a cautious, optimistic view on the economy and the market. Please review the Firm’s top five holdings to gain insights into their key selections for 2025.

In its fourth-quarter 2025 investor letter, Matrix Asset Advisors highlighted Fiserv, Inc. (NASDAQ:FISV). Headquartered in Milwaukee, Wisconsin, Fiserv, Inc. (NASDAQ:FISV) is a leading financial technology company. On February 10, 2026, Fiserv, Inc. (NASDAQ:FISV) stock closed at $62.59 per share. One-month return of Fiserv, Inc. (NASDAQ:FISV) was -7.27%, and its shares are down 72.52% over the past twelve months. Fiserv, Inc. (NASDAQ:FISV) has a market capitalization of $34.02 billion.

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

"On the sell side, we exited our position in Fiserv, Inc. (NASDAQ:FISV) following a surprising earning miss and sharply reduced earnings guidance from the company’s new CEO on the third quarter call. The new CEO, who officially assumed that role in July after joining the company in late 2024, explained that, after a comprehensive review of the business, he faulted the company’s short-term focus, underinvestment, poor financial oversight, and overly optimistic goals. This update brought into question the company’s historic financial reports that underpinned our valuation work. While this is a very disappointing outcome, it highlights the importance of diversification. Even with this loss, the portfolio had a very strong year."

Fiserv, Inc. (NASDAQ:FISV) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 83 hedge fund portfolios held Fiserv, Inc. (NASDAQ:FISV) at the end of the third quarter, compared to 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 a bullish thesis 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.