Why One Fund Made an $11 Million Bet on TaskUs Despite a Steep 32% Stock Drop

On November 13, Zurich-based PSquared Asset Management disclosed a new position in TaskUs (NASDAQ:TASK), acquiring 635,084 shares valued at approximately $11.34 million.

What Happened

According to a filing with the U.S. Securities and Exchange Commission dated November 13, PSquared Asset Management AG established a new position in TaskUs during the third quarter. The fund acquired 635,084 shares with an aggregate value of $11.34 million as of September 30. This new stake represents 9.0% of the fund’s $125.97 million in reportable U.S. equity assets and ranks as its fourth-largest holding after the quarter’s transactions.

What Else to Know

Top holdings after the filing:

• NYSE: K: $42.77 million (34.0% of AUM)
• NYSEMKT: SLSR: $25.04 million (19.9% of AUM)
• NYSE: TECK: $18.99 million (15.1% of AUM)
• NASDAQ: TASK: $11.34 million (9.0% of AUM)
• NASDAQ: HOLX: $8.42 million (6.7% of AUM)

As of Friday, shares of TaskUs were priced at $11.51, down a staggering 32% over the past year and significantly underperforming the S&P 500, which is instead up about 15% in the same period.

Company Overview

Company Snapshot

• TaskUs offers digital outsourcing services, including omni-channel customer care, trust and safety solutions, content security, and AI data labeling for global enterprises.
• The company generates revenue by providing business process outsourcing solutions primarily through digital channels, charging clients for managed services and specialized support.
• It serves clients across diverse digital economy sectors, such as e-commerce, fintech, food delivery, ride sharing, gaming, social media, and streaming media.

TaskUs is a leading provider of digital outsourcing and business process services. The company leverages technology-driven solutions to help clients scale operations, enhance customer experiences, and manage content security across digital platforms. Its strategic focus on high-growth digital sectors and expertise in AI data services position it as a competitive partner for innovative, fast-scaling enterprises.

Foolish Take

TaskUs shares have swung violently and now sit well below last year’s levels, but the business itself just posted one of its strongest quarters. Revenue rose 17% year over year to a record $298.7 million, adjusted EBITDA margins held at 21.2% (among the best in the industry, per management), and free cash flow hit $42 million in the quarter, converting about two-thirds of EBITDA into cash.

Meanwhile, TaskUs trades like a company in structural decline rather than one generating durable cash and expanding into higher-value work such as AI data labeling and trust and safety -- perhaps why PSquared has piled in. The position size matters, too. At roughly 9% of reported assets, this is not a toe-dip. It sits alongside concentrated bets in Kellanova, Teck Resources, and Silvercrest Metals, suggesting a fund comfortable underwriting volatility in exchange for asymmetric upside.

Ultimately, recent performance shows TaskUs is not necessarily a momentum stock. However, it may be a cash-generating operator whose valuation still reflects past fears, not current execution.

Glossary

Asset management: The professional management of investments such as stocks, bonds, and other assets on behalf of clients.

Stake: The ownership interest or share held in a company by an investor or institution.

Position: The amount of a particular security or asset owned by an investor or fund.

Reportable U.S. equity assets: U.S. stock holdings that must be disclosed in regulatory filings due to size or regulatory requirements.

AUM (assets under management): The total market value of investments managed by a fund or asset manager.

Business process outsourcing (BPO): Contracting business operations and processes to a third-party service provider.

Omni-channel customer care: Providing customer support across multiple communication channels, such as phone, email, chat, and social media.

Trust and safety solutions: Services designed to protect users and platforms from fraud, abuse, and harmful content.

Content security: Measures and services to monitor, filter, and protect digital content from inappropriate or harmful material.

AI data labeling: The process of tagging or annotating data to train artificial intelligence and machine learning models.

Digital economy sectors: Industries driven by digital technologies, such as e-commerce, fintech, social media, and streaming.

TTM: The 12-month period ending with the most recent quarterly report.

Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool recommends TaskUs and Teck Resources. The Motley Fool has a disclosure policy.