Artisan Partners, an investment management company, released its “Artisan Value Fund” third quarter 2022 investor letter. A copy of the same can be downloaded here. In the third quarter, the fund underperformed its benchmark index. Its Investor Class fund ARTLX returned -7.04%, Advisor Class fund APDLX posted a return of -7.07%, and Institutional Class fund APHLX returned -7.06% in the quarter, compared to a -5.62% return for the Russell 1000 Value Index. In addition, please check the fund’s top five holdings to know its best picks in 2022.
In the third-quarter letter, Artisan Partners discussed stocks like Fiserv, Inc. (NASDAQ:FISV). Headquartered in Milwaukee, Wisconsin, Fiserv, Inc. (NASDAQ:FISV) is a global financial services technology company. On November 14, 2022, Fiserv, Inc. (NASDAQ:FISV) stock closed at $100.01 per share. One-month return of Fiserv, Inc. (NASDAQ:FISV) was 2.71% and its shares lost 1.80% of their value over the last 52 weeks. Fiserv, Inc. (NASDAQ:FISV) has a market capitalization of $63.509 billion.
Artisan Partners made the following comment about Fiserv, Inc. (NASDAQ:FISV) in its Q3 2022 investor letter:
“While our list of potential candidates is filling up, we are being patient. We added two new positions in Q3: Fiserv, Inc. (NASDAQ:FISV) and Heineken. Fiserv is a provider of financial technology, core processing and payment processing services to financial institutions and merchants. The company reports three segments: acceptance (merchant acquiring), payments & networks (issuer processing and debit network), and fintech (core bank processing). Fiserv has strong market positions and scale across these businesses, but competitive intensity varies. In the acceptance segment, Fiserv owns Clover, a high-growth point-of-sale (POS) system forsmall and medium businesses, with similar annualized gross payment volume to Block’s Square. However, Fiserv is receiving little credit for Clover. The market is overly concerned about the competitive nature of merchant acquiring and legacy processors losing market share to new entrants. We believe Fiserv’s business is more resilient and will continue to grow in the medium term driven by its scale and Clover. Moreover, fintech and payments are good businesses that are undervalued by the market. Both businesses are in highly consolidated industries where scale advantages are critical, and revenues are sticky due to high switching costs. A high share of recurring revenue and profit, an attractive margin profile and high free cash flow conversion are characteristics that should provide downside protection, in our view. We started our position with shares selling for about 11X normalized operating profit. That is a below-average multiple for an above-average business.”
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Fiserv, Inc. (NASDAQ:FISV) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 59 hedge fund portfolios held Fiserv, Inc. (NASDAQ:FISV) at the end of the second quarter, which was 58 in the previous quarter.
We discussed Fiserv, Inc. (NASDAQ:FISV) in another article and shared the best growth stocks to buy for the next 5 years. In addition, please check out our hedge fund investor letters Q3 2022 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.
