Broyhill Asset Management, an investment management company, released a second-quarter 2024, investor letter. A copy of the letter can be downloaded here. Despite gains in global markets, the Broyhill Equity portfolio declined in the second quarter. As the gap in market leadership grew, the fund underperformed. That doesn’t make it any easier to take and isn’t an excuse. At the end of the quarter, the top five investments made up almost 50% of the equity portfolio. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2024.
Broyhill Asset Management 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 $100.953 billion. The one-month return of Fiserv, Inc. (NYSE:FI) was 4.35%, and its shares gained 45.29% of their value over the last 52 weeks. On September 16, 2024, Fiserv, Inc. (NYSE:FI) stock closed at $175.35 per share.
Broyhill Asset Management stated the following regarding Fiserv, Inc. (NYSE:FI) in its Q2 2024 investor letter:
Fiserv, Inc. (NYSE:FI) is the premier provider of financial technology services, supporting banks, credit unions, and financial institutions with innovative banking solutions, payment processing, and data analytics to streamline and secure financial transactions. The company’s shares slid 7% during the quarter before rallying 10% in July to fresh all-time highs. Clover remains the company’s crown jewel, generating over $300 billion in annualized GPV (Gross Payment Volume) with better monetization, driving 28% revenue growth in the recently reported quarter, and three new hardware products plus pilot programs in Mexico and Brazil going live in the coming months. Simply put, there are few businesses in this industry executing even close to the same level, and fewer still with Fiserv’s scale, distribution, and collection of assets. In our initial write-up, we highlighted the embedded distribution advantages often enjoyed by incumbents, noting that “Fiserv can cross-sell products through its large, engrained distribution channels, driving faster growth than even its most rapidly growing peers. And with Clover and Square accounting for less than 10% of a fragmented market, we think there is plenty of room for both to run.” Notably, Jack Dorsey, Chief Block Head, Square Head, Chairman, and Cofounder, recently came to the same conclusion, admitting as much on the company’s most recent earnings call: “I would state that our product quality is far above the majority of our competitors. Where we have been weaker in the past is how we mirror that with our go-to-market strategy and just updating our approach there, especially given what our competitors have done.“ We wonder which competitors come to mind.
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. In the second quarter Fiserv, Inc.’s (NYSE:FI) adjusted revenue increased by 7% to $4.8 billion, and adjusted operating income rose by 12% to $1.8 billion, resulting in an adjusted operating margin of 38.4%. 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 fintech stocks to buy in 2024. In addition, please check out our hedge fund investor letters Q2 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.
