In a significant move amidst a challenging year for EPAM Systems, Chicago-based Wishbone Management has strategically entered a new position in the technology services provider. According to a filing with the U.S. Securities and Exchange Commission dated November 13, Wishbone Management disclosed that it acquired 100,000 shares of EPAM, valued at approximately $15.08 million as of the end of the third quarter. This acquisition represents 8.11% of the fund’s 13F reportable assets under management, expanding its portfolio, which includes only four total positions.
As for Wishbone Management’s top holdings following this disclosure, they include:
– 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)
Despite recent volatility, EPAM shares are currently trading at $204.88, reflecting a 12% decline over the past year, in contrast to the S&P 500’s gain of around 16% during the same timeframe. The company, boasting a market capitalization of $11.41 billion, reported a trailing twelve-month revenue of $5.30 billion and a net income of $371.62 million.
EPAM Systems specializes in digital platform engineering, software development, infrastructure management, and consulting services, addressing the needs of clients in various sectors, including financial services, healthcare, and software. With over 60,000 employees globally, EPAM is recognized for its expertise in delivering complex digital transformation projects.
Interestingly, EPAM recently posted third-quarter revenues of $1.394 billion, an impressive increase of 19.4% year over year, and raised its full-year outlook. This performance highlights a disconnect between stock prices and the company’s operational success—an area where concentrated funds like Wishbone Management see potential for mispriced value rather than fleeting momentum.
In addition to its robust revenue, EPAM repurchased $82.1 million of its stock during the last quarter and has recently authorized a $1 billion buyback program, signaling confidence in its financial health and growth prospects. The company anticipates revenue of approximately $5.43 billion to $5.45 billion for 2025, with non-GAAP earnings per share projected to reach as high as $11.44.
With its portfolio primarily focused on industrial distribution, airlines, and payments infrastructure, the addition of EPAM stands out for its pure-play digital engineering focus and connection to enterprise AI spending. This move appears to be a strategic diversification within the context of a concentrated investment strategy.
