What to Know About This Fund's $39 Million EPAM Exit After a 43% Stock Decline
Key Points
Owls Nest Partners sold 230,246 shares of EPAM Systems last quarter; the estimated trade value was $39.37 million based on quarterly average prices.
The quarter-end position value decreased by $47.17 million, reflecting both trading and price change.
The position was previously 13.1% of the fund's AUM as of the prior quarter.
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On May 14, 2026, Owls Nest Partners IA disclosed in a Securities and Exchange Commission filing that it sold out of EPAM Systems (NYSE:EPAM), liquidating 230,246 shares in a transaction estimated at $39.37 million based on quarterly average pricing.
What happened
In a filing with the Securities and Exchange Commission dated May 14, 2026, Owls Nest Partners IA reported selling all 230,246 shares of EPAM Systems, with the estimated transaction value totaling $39.37 million based on the mean closing price for the quarter. The quarter-end value of the stake dropped by $47.17 million, reflecting both the sale and price movement.
What else to know
- Top holdings after the filing:
- NASDAQ:TBBK: $58.81 million (20.6% of AUM)
- NASDAQ:ENSG: $45.38 million (15.9% of AUM)
- NYSE:TKR: $37.83 million (13.2% of AUM)
- NYSE:WMS: $36.22 million (12.7% of AUM)
- NYSE:TGLS: $36.10 million (12.6% of AUM)
- As of May 13, 2026, EPAM Systems shares were priced at $102.69, down 43% over the past year and well underperforming the S&P 500, which is instead up about 28%.
Company Overview
| Metric | Value |
|---|---|
| Revenue (TTM) | $5.56 billion |
| Net Income (TTM) | $386.72 million |
| Price (as of market close May 13, 2026) | $102.69 |
| One-Year Price Change | (43%) |
Company Snapshot
- EPAM provides digital platform engineering, software development, infrastructure management, testing, and consulting services across multiple technology domains.
- The firm offers a range of project-based and ongoing consulting, engineering, and support services to enterprise clients for technology transformation.
- It serves global clients in sectors such as financial services, travel, software and hi-tech, media, and healthcare.
EPAM Systems is a global provider of digital engineering and IT consulting services, leveraging a large technical workforce to deliver complex solutions for enterprise customers. The company’s strategy centers on end-to-end digital transformation, platform modernization, and high-value consulting, which positions it as a key partner for organizations seeking to innovate and scale technology initiatives. EPAM Systems’ diversified client base and expertise in both engineering and advisory services underpin its competitive advantage in the rapidly evolving technology services market.
What this transaction means for investors
After the stock's steep decline over the past year, Owls Nest chose to exit entirely rather than wait for a fuller recovery. That's notable because EPAM's underlying business showed signs of improvement in the first quarter. Revenue rose 7.6% year over year to $1.4 billion, while GAAP diluted earnings per share climbed nearly 19% to $1.52. The company also generated non-GAAP operating margins of 14.3% and repurchased $324 million of stock during the quarter, signaling confidence in its long-term outlook.
Management struck an optimistic tone. CEO Balazs Fejes said the company delivered a "strong first quarter" and highlighted continued momentum in AI-native and AI-readiness initiatives. EPAM also raised its full-year outlook, now projecting revenue growth of 4% to 6.5% and non-GAAP EPS of $12.98 to $13.28.
For long-term investors, the key question is whether AI-driven demand can translate into sustained organic growth. The business remains profitable, with more than $1 billion in cash on hand, and deeply embedded with enterprise customers. But after several years of uneven demand, investors will likely want to see stronger growth acceleration to be fully convinced.
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Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Advanced Drainage Systems and EPAM Systems. The Motley Fool has a disclosure policy.
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