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]

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]