Fiserv (FI) Surged in Q3 Despite No Material Fundamental Changes

Oakmark Funds, advised by Harris Associates, released its “Oakmark Equity and Income Fund” third quarter 2024 investor letter. A copy of the letter can be downloaded here. The fund delivered 6.16% during the quarter compared to the Lipper Balanced Fund Index’s 5.55% return. The equity portfolio returned 7.30% in the quarter, compared to 5.89% for the S&P 500 Index. The fixed-income portfolio returned 5.16%. The fund has allocated 60.1% in equities, 38.4% in fixed income, and 1.5% in cash. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2024.

Oakmark Equity and Income Fund highlighted stocks like Fiserv, Inc. (NYSE:FI), in the second quarter 2024 investor letter. Fiserv, Inc. (NYSE:FI) is a payment and financial services technology services provider with a market capitalization of $108.231 billion. The one-month return of Fiserv, Inc. (NYSE:FI) was 7.49%, and its shares gained 67.13% of their value over the last 52 weeks. On October 10, 2024, Fiserv, Inc. (NYSE:FI) stock closed at $187.99 per share.

Oakmark Equity and Income Fund stated the following regarding Fiserv, Inc. (NYSE:FI) in its Q3 2024 investor letter:

“Fiserv, Inc. (NYSE:FI) was the top contributor during the quarter. The U.S.-headquartered data processing and outsourcing services company’s stock price rose despite no material fundamental changes. We continue to be impressed with Fiserv’s improved business results under CEO Frank Bisignano. We believe Bisignano is a passionate and knowledgeable leader who is focused on leveraging the company’s scale and large distribution network to drive continued growth at the company. We think that Fiserv is well-positioned to benefit from the secular trend toward digital payments and banking and that the stock offers an attractive risk/reward.”

A businessperson checking their laptop, highlighting the company’s integration of technology across its banking and financial services.

Fiserv, Inc. (NYSE:FI) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 73 hedge fund portfolios held Fiserv, Inc. (NYSE:FI) at the end of the second quarter which was 69 in the previous quarter. While we acknowledge the potential of Fiserv, Inc. (NYSE:FI) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

In another article, we discussed Fiserv, Inc. (NYSE:FI) and shared the list of most promising fintech stocks to buy in detail. In addition, please check out our hedge fund investor letters Q3 2024 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.