In the fourth quarter of 2025, the Madison Large Cap Fund made a strategic decision to divest its holdings in Fiserv, Inc. (FISV), a prominent financial technology company. This move came after Fiserv reported an unsatisfactory revenue decline in its Financial Solutions division and indicated a need for substantial future investments to bolster its product suite. The fund's managers concluded that Fiserv's long-term growth profile no longer aligned with their expectations, prompting the sale of all shares. This action highlights the fund's dynamic approach to portfolio management, reacting to company-specific performance issues even as the broader market, represented by the S&P 500, showed robust growth.
Madison Large Cap Fund Exits Fiserv Amidst Financial Solutions Underperformance
On , investment advisor Madison Investments disclosed in its fourth-quarter 2025 investor letter that its Madison Large Cap Fund had fully exited its position in Fiserv, Inc. (NASDAQ:FISV). This significant portfolio adjustment was primarily driven by Fiserv's underperforming revenue in its Financial Solutions segment. Furthermore, the newly appointed management team at Fiserv conveyed that considerable investments would be necessary across its various business lines to upgrade and improve its product offerings. These revelations caused the Madison Large Cap Fund to lose confidence in the company's ability to maintain a consistent and robust growth trajectory, ultimately leading to the complete liquidation of its shares. As of , Fiserv's stock closed at $58.40 per share, reflecting a one-month return of -11.90% and a twelve-month decrease of 74.87%, with a market capitalization of $31.746 billion. During the same period, the S&P 500 Index demonstrated strong performance, returning 2.65% in the fourth quarter and achieving an impressive 17.9% for the full year 2025.
This decision by the Madison Large Cap Fund underscores the critical importance of sustained performance and clear growth strategies for companies seeking to retain institutional investor confidence. While the broader market, particularly mega-cap technology firms, continued to drive overall S&P 500 returns, individual companies like Fiserv faced scrutiny over their segment-specific results and future investment needs. For investors, this serves as a reminder to closely evaluate a company's operational health and management's strategic vision beyond general market trends.