Slowdown in Its Small Business POS Platform Weighed on Fiserv's (FISV) Shares

The London Company, an investment management company, released “The London Company Large Cap Strategy” fourth-quarter 2025 investor letter. In Q4 2025, US equities ended the third consecutive quarter of higher returns, with the Russell 3000 Index rising 2.4%. A copy of the letter can be downloaded here. The market highlighted how investors balanced the optimism on earnings growth and concerns regarding AI returns and cooling macroeconomic factors. Against this backdrop The London Company Large Cap portfolio returned 0.4% (0.2% net) compared to a 2.4% increase in the Russell 1000 Index. Volatility factors and concentrated market leadership were notable headwinds to the Strategy’s performance in the quarter.  Heading into 2026, the economic and policy backdrop presents a blend of confidence and doubt. Against this backdrop, the portfolio remains stable and believes it can help investors in long-term wealth creation while managing downside risk. In addition, please check the Strategy’s top five holdings to know its best picks in 2025.

In its fourth-quarter 2025 investor letter, The London Company Large Cap Strategy highlighted stocks like Fiserv, Inc. (NASDAQ:FISV). Fiserv, Inc. (NASDAQ:FISV) is an American financial technology company that provides technology services and solutions. On February 17, 2026, Fiserv, Inc. (NASDAQ:FISV) stock closed at $63.45 per share. One-month return of Fiserv, Inc. (NASDAQ:FISV) was -3.47%, and its shares are down 73.15% over the past twelve months. Fiserv, Inc. (NASDAQ:FISV) has a market capitalization of $34.491 billion.

The London Company Large Cap Strategy stated the following regarding Fiserv, Inc. (NASDAQ:FISV) in its fourth quarter 2025 investor letter:

"Fiserv, Inc. (NASDAQ:FISV) – FI weakness came after ongoing concerns about a slowdown in its small business POS platform on top of weak 3Q results. The company took a steep guidance cut and announced management and Board changes. The large stock reaction reflects a loss of credibility, increased doubts around the long-term growth outlook, and the realization that a turnaround will require meaningful investment over the medium-term. Given the extent of the reset and diminished confidence in the thesis, we sold our position."

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 Matrix Asset Advisors' 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.