What makes Fiserv (FI) a Wonderful Stock?

Core Insights - Vulcan Value Partners reported positive absolute performance across all strategies in Q3 2025, with the All-Cap Composite leading at 5.5% net return [1] - Fiserv, Inc. (NYSE:FI) was highlighted as a new position, with a significant decline in stock value over the past year, closing at $121.11 with a market cap of $65.83 billion [2][3] Performance Summary - Large Cap Composite returned 4.6% net of fees and expenses - Small Cap Composite returned 4.1% net - Focus Composite returned 3.7% net - Focus Plus Composite returned 3.7% net - All-Cap Composite returned 5.5% net [1] Company Analysis: Fiserv, Inc. - Fiserv operates in two segments: merchant solutions and financial solutions, providing essential products and services [3] - The company has high switching costs, aiding customer retention and revenue stability [3] - Fiserv is expected to generate over $5 billion in free cash flow this year, which is being used for share repurchases [3] - The stock has seen a significant decline since earlier in the year, but the value remains stable [3] Hedge Fund Interest - Fiserv, Inc. was held by 94 hedge fund portfolios at the end of Q2 2025, an increase from 72 in the previous quarter [4] - Despite its potential, certain AI stocks are considered to offer greater upside potential with less downside risk [4]