Multiple Tailwinds Boosted Fiserv (FI) in Q4

Parnassus Investments, an investment management company, released the “Parnassus Core Equity Fund” fourth quarter 2024 investor letter. A copy of the letter can be downloaded here. In the fourth quarter, U.S. stocks rose, closing up a robust 2024. The Fund (Investor Shares) surged 0.28% (net of fees) in the quarter underperforming the S&P 500 Index’s 2.41% return. For the year, the fund returned 18.52% (net of fees) compared to S&P 500 Index’s 25.02%. Stocks soared after the U.S. presidential election as investors awaited the incoming administration’s business-friendly policies. In addition, please check the fund’s top five holdings to know its best picks in 2024.

In its fourth quarter 2024 investor letter, Parnassus Core Equity Fund emphasized stocks such as Fiserv, Inc. (NYSE:FI). Fiserv, Inc. (NYSE:FI) is a payment and fintech services provider. The one-month return of Fiserv, Inc. (NYSE:FI) was -6.29%, and its shares gained 41.28% of their value over the last 52 weeks. On March 11, 2025, Fiserv, Inc. (NYSE:FI) stock closed at $213.41 per share with a market capitalization of $119.785 billion.

Parnassus Core Equity Fund stated the following regarding Fiserv, Inc. (NYSE:FI) in its Q4 2024 investor letter:

“Fiserv, Inc. (NYSE:FI) reported solid third-quarter financial results and upgraded its forward guidance. We believe the payments processor and banking technology provider is well positioned for continued growth as more merchants and financial institutions become reliant on its platform.

Fiserv benefited in 2024 from growing demand for payments processing and fintech intermediaries, gaining traction with both merchants and financial institutions. Its quarterly results throughout the year reflected strong competitive positioning.”

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Fiserv, Inc. (NYSE:FI) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 80 hedge fund portfolios held Fiserv, Inc. (NYSE:FI) at the end of the fourth quarter which was 71 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 best-performing fintech stocks to buy according to analysts. In addition, please check out our hedge fund investor letters Q4 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.