Why a $15 Million Bet on EPAM Looks Smart Amid a 12% One-Year Stock Decline

Chicago-based Wishbone Management initiated a new position in EPAM Systems (NYSE:EPAM), buying 100,000 shares valued at $15.08 million, according to a November 13 SEC filing.

What Happened

According to a filing with the U.S. Securities and Exchange Commission dated November 13, Wishbone Management disclosed a new stake in EPAM Systems (NYSE:EPAM), acquiring 100,000 shares in the third quarter. The position, valued at $15.08 million as of the quarter end, marks the fund’s entry into the information technology services provider, though it's important to note the fund held just four positions.

What Else to Know

This new position represents 8.11% of Wishbone Management’s 13F reportable assets under management as of September 30.

Top holdings after the filing:

• NASDAQ: AVT: $67.44 million (36.3% of AUM)
• NYSE: CPA: $56.14 million (30.2% of AUM)
• NYSE: LSPD: $47.34 million (25.4% of AUM)
• NYSE: EPAM: $15.08 million (8.1% of AUM)

As of Thursday, EPAM shares were priced at $204.88, down 12% over the past year and well underperforming the S&P 500, which instead gained about 16%.

Company Overview

Company Snapshot

• EPAM Systems provides digital platform engineering, software development, infrastructure management, and consulting services, with offerings spanning AI, automation, and digital design.
• EPAM serves clients in financial services, travel and consumer, software and hi-tech, media, and healthcare industries worldwide.
• The company employs over 60,000 people globally and maintains a diversified client base.

EPAM Systems, Inc. is a global technology services provider with over 60,000 employees and a diversified client base. The company's strategy centers on delivering complex digital transformation projects, leveraging expertise in engineering and consulting to maintain a competitive edge. EPAM's scale and breadth of services position it as a key partner for organizations pursuing digital innovation and operational efficiency.

Foolish Take

EPAM shares are down roughly 12% over the past year, even as the company just posted $1.394 billion in third-quarter revenue, up 19.4% year over year, and raised its full-year outlook. That disconnect is exactly where concentrated funds tend to look for mispriced durability rather than momentum. It’s an interesting move, especially with shares up more than 30% since September 30, the date of this disclosure.

As further proof of strength, EPAM repurchased $82.1 million of stock during the quarter and authorized an additional $1 billion buyback program. For 2025, management now expects revenue of roughly $5.43 billion to $5.45 billion, with non-GAAP EPS climbing as high as $11.44.

Inside this portfolio, the fund owns just four stocks, with exposure to industrial distribution, airlines, and payments infrastructure. EPAM stands out as the only pure-play digital engineering name and one directly levered to enterprise AI spending rather than consumer hype. In other words, this looks like a diversification move within concentration, not a flier.

Glossary

13F reportable assets under management: The portion of a fund's assets that must be disclosed in quarterly SEC Form 13F filings.
Assets Under Management (AUM): The total market value of investments managed by a fund or investment firm.
Stake: The ownership interest or amount of shares held in a company by an investor or fund.
Trailing twelve months (TTM): The 12-month period ending with the most recent quarterly report.
Compound Annual Growth Rate (CAGR): The average annual growth rate of a value over a specified period, assuming compounding.
Digital transformation: The integration of digital technology into all business areas, fundamentally changing operations and value delivery.
Quarter end: The last day of a company's fiscal quarter, used for reporting financial results.
Position: The amount of a particular security or asset held by an investor or fund.
Information technology services provider: A company offering technology-related services such as software development, consulting, and infrastructure management.
Market close: The end of the regular trading session for a stock exchange on a given day.

Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends EPAM Systems. The Motley Fool recommends Copa and Lightspeed Commerce. The Motley Fool has a disclosure policy.