Giverny Capital Asset Management, LLC, an investment management company, recently published its fourth-quarter 2025 investor letter. A copy of the same can be downloaded here. The Portfolio returned 0.01% compared to 2.66% for the S&P 500. YTD, the fund returned 12.58% compared to 17.88% for the Index. The firm faced a challenging fourth quarter and calendar year, despite solid appreciation. The outperformance of a few large technology companies has negatively impacted performance, given the portfolio's und ...

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 results across all its investment strategies for the year, with notable returns in various composites despite overvalued markets [1] - The firm emphasizes a disciplined investment approach, prioritizing safety and long-term gains over short-term performance, drawing parallels to the late 1990s dot-com bubble [1] Performance Summary - Large Cap Composite (Net) returned -1.5% in Q4 and 7.9% YTD - Small Cap Composite (Net) gained 3.2% in Q4 and 9.5% YTD - Focus Composite (Net) returned 0.1% in Q4 and 7.1% YTD - Focus Plus Composite (Net) returned 0.1% in Q4 and 6.2% YTD - All-Cap Composite (Net) returned 1.3% in Q4 and 10.7% YTD [1] Company Focus: Fiserv, Inc. - Fiserv, Inc. was identified as a significant detractor in the Large Cap and All-Cap Strategies, with a one-month return of -0.15% and a 52-week loss of 67.73% [2] - As of January 22, 2026, Fiserv's stock closed at $67.40 per share, with a market capitalization of $36.638 billion [2] Management Insights on Fiserv, Inc. - Fiserv was previously owned by the firm until Q1 2025, after which the stock price declined due to downward guidance revisions and delays in initiatives [3] - The new management team acknowledged aggressive tactics that compromised long-term customer relationships, leading to a strategic shift towards reinvestment for sustainable growth [3] - Despite current challenges, Fiserv is expected to grow revenues and generate substantial free cash flow during its reinvestment phase, with the firm taking advantage of share price declines to increase its position [3]

Group 1: Oakmark Fund Performance - Oakmark Fund outperformed the S&P 500 Index in Q4 2025, returning 4.78% compared to the index's 2.66% [1] - The fund aims to deliver capital appreciation by investing in diverse large-cap US companies [1] Group 2: Fiserv, Inc. Overview - Fiserv, Inc. (NASDAQ:FISV) is a leading financial technology company providing payment and fintech services [2] - Fiserv's stock price closed at $66.75 per share on January 12, 2026, with a market capitalization of $36.285 billion [2] Group 3: Fiserv, Inc. Performance and Outlook - Fiserv was the top detractor for Oakmark Fund in Q4 2025, with a one-month return of -2.31% and a 52-week loss of 67.32% [2][3] - The company faced a sharp decline in stock price following disappointing Q3 earnings and a strategic review indicating prior revenue growth targets were unachievable [3] - The new management team anticipates mid single-digit organic revenue growth and double-digit EPS growth on a normalized basis, suggesting an attractive risk/reward scenario with shares trading at a single-digit multiple of current EPS [3] Group 4: Hedge Fund Interest in Fiserv, Inc. - Fiserv, Inc. was held by 83 hedge fund portfolios at the end of Q3 2025, down from 94 in the previous quarter [4] - While Fiserv is recognized for its potential, certain AI stocks are considered to offer greater upside potential and less downside risk [4]

Core Insights - Bailard Technology Strategy generated a net return of 9.36% in Q3 2025, underperforming compared to the S&P North American Technology Index (13.14%), Morningstar U.S. Open-End Technology Categories (11.64%), and Lipper Science and Technology Fund Index (11.19%) [1] - The quarter showed improved technology fundamentals driven by structural demand trends and evolving regulations across key verticals [1] Company-Specific Insights - Fiserv, Inc. (NASDAQ:FISV) is highlighted as a leading financial technology company, with a one-month return of 7.67% but a significant 52-week loss of 67.28%, closing at $67.50 per share with a market capitalization of $36.693 billion [2] - Fiserv's recent underperformance is attributed to challenges in its core consumer-facing business segment, leadership transition, product launch delays, and underperformance in Merchant Solutions, leading to downward revisions in FY25 revenue and margin guidance [3] - Despite being held by 83 hedge fund portfolios at the end of Q3 2025, down from 94 in the previous quarter, the company is not considered among the 30 most popular stocks among hedge funds [4]

Core Insights - The London Company reported a 6.3% return for its Large Cap Strategy in Q3 2025, underperforming the Russell 1000 Index which gained 8.0% [1] - The rally in US equities was attributed to the Fed rate cut, strong corporate earnings, and enthusiasm around AI, despite mixed economic data [1] Company Analysis: Fiserv, Inc. (NYSE:FI) - Fiserv, Inc. experienced a significant decline, with a one-month return of -49.13% and a 52-week loss of 69.48%, closing at $64.45 per share with a market capitalization of $34.665 billion on November 4, 2025 [2] - The underperformance of Fiserv was linked to slower growth and margin pressure in its Merchant business, leading to reduced guidance, while organic growth was hindered by delayed product launches and cautious consumer spending [3] - Despite challenges, Fiserv's international expansion, new products, and resilient Financial Solutions segment were highlighted as strengths, maintaining a leadership position in core segments [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, indicating growing interest among institutional investors [4] - However, there is a belief that certain AI stocks may offer greater upside potential and less downside risk compared to Fiserv [4]

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]