Here’s What Hit Fiserv (FISV) in Q4

Group 1: Market Overview - In Q4 2025, the S&P 500 returned 2.7%, with yearly gains reaching 17.9% [1] - Since the 2007-08 financial crisis, the S&P 500 Index has increased tenfold, achieving positive results in 15 of the last 17 years [1] - High valuations have made investors cautious, particularly due to returns being concentrated in a few stocks [1] Group 2: Sector Performance - Information technology and communication services led performance in 2025, although results varied significantly within those sectors [1] - The forward PE of the S&P 500 Index aligns with historical averages when excluding the "Magnificent 7" [1] Group 3: Fund Performance - The Hotchkis & Wiley Large Cap Disciplined Value Fund outperformed the Russell 1000 Value Index in both Q4 and the full calendar year [1] - Positive stock selection contributed to the Fund's relative performance [1] Group 4: Company Focus - Fiserv, Inc. - Fiserv, Inc. (NASDAQ:FISV) was highlighted as a leading detractor for the Fund, with a one-month return of -3.29% and a 52-week loss of 70.64% [2] - As of January 29, 2026, Fiserv's stock closed at $63.43 per share, with a market capitalization of $34.48 billion [2] Group 5: Fiserv, Inc. Analysis - Fiserv is recognized for its scale, diversification, and ability to compound earnings at a double-digit rate, making its current valuation attractive [3] - A sharp reset occurred in Q3, with a material cut to the FY25 outlook due to a significant miss in the Financial Solutions segment [3] - The new CEO indicated that FY26 will be a transition year, resetting the long-term growth algorithm to a lower baseline [3] - Once earnings stabilize, Fiserv is expected to offer strong topline growth, margin expansion, and cash generation [3]