Here's Why Madison Large Cap Fund Exited Fiserv (FISV)

Madison Investments, an investment advisor, released its fourth-quarter 2025 investor letter for the “Madison Large Cap Fund”. A copy of the letter can be downloaded here. In the fourth quarter, the S&P 500 returned 2.65%, resulting in a full-year return of 17.9% for 2025. Over the last three years, the Index has achieved annual growth of over 21%. Following the recent trends, market leadership was defined by High Beta and Momentum factors, with narrow participation. However, in the fourth quarter, the market saw slight improvements in previously lagging sectors like Healthcare, Financials, and Consumer Discretionary. Still, mega-cap technology companies remained the primary drivers of the S&P 500's overall return, indicating high stock concentration. Against this backdrop, the Madison Large Cap Fund (Class I) appreciated 3.43% compared to the S&P 500 Index’s 2.65% return. In addition, please check the Fund’s top five holdings to know its best picks in 2025.

In its fourth-quarter 2025 investor letter, Madison Large Cap Fund 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 23, 2026, Fiserv, Inc. (NASDAQ:FISV) stock closed at $58.40 per share. One-month return of Fiserv, Inc. (NASDAQ:FISV) was -11.90%, and its shares were down 74.87% over the past twelve months. Fiserv, Inc. (NASDAQ:FISV) has a market capitalization of $31.746 billion.

Madison Large Cap Fund stated the following regarding Fiserv, Inc. (NASDAQ:FISV) in its fourth quarter 2025 investor letter:

"The bottom five detractors for the quarter were Fiserv, Inc. (NASDAQ:FISV), CDW Corporation, Copart, Progressive, and Texas Instruments. Fiserv reported disappointing results with revenue declining in its Financial Solutions segment. Furthermore, new management believes the company requires additional investment across its businesses in order to improve its product suite. As a result, we lost conviction in the company’s durable growth profile and sold our shares."

Fiserv, Inc. (NASDAQ:FISV) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 82 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 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 list of best tech stocks that beat earnings estimates. 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.