Is EPAM Systems (EPAM) an “AI Sleeper”? - InvestingChannel

Is EPAM Systems (EPAM) an “AI Sleeper”?

Broyhill Asset Management, a boutique investment firm, released its fourth-quarter 2023 investor letter. A copy of the same can be downloaded here. The past two years were mirror images of each other for equity investors. Global stocks increased by 22% in 2022 after declining by 18% the year before. The fourth quarter saw exceptionally high portfolio activity. Although Broyhill’s fully invested managed funds underperformed year-over-year broader equities benchmarks, they avoided problems during the falls in 2021 and 2022, and their relative performance is still well above any longer-term horizon. In addition, you can check the top 5 holdings of the fund to know its best picks in 2023.

Broyhill Asset Management featured stocks such as EPAM Systems, Inc. (NYSE:EPAM) in the fourth quarter 2023 investor letter. Headquartered in Newtown, Pennsylvania, EPAM Systems, Inc. (NYSE:EPAM) is a digital platform engineering and software development services provider. On February 16, 2024, EPAM Systems, Inc. (NYSE:EPAM) stock closed at $311.98 per share. One-month return of EPAM Systems, Inc. (NYSE:EPAM) was 3.99%, and its shares lost 7.76% of their value over the last 52 weeks. EPAM Systems, Inc. (NYSE:EPAM) has a market capitalization of $18.028 billion.

Broyhill Asset Management stated the following regarding EPAM Systems, Inc. (NYSE:EPAM) in its fourth quarter 2023 investor letter:

“We recently shared our thoughts on AI with investors in a piece titled Absolute Insanity. We believe the threat of disruption weighed heavily on the IT Services industry, an industry we’ve actively followed and invested in for the past decade. While there is some truth to the AI narrative surrounding IT Services – many legacy players are particularly vulnerable to disruption – a handful of companies are positioned to enjoy a massive tailwind from this new technology. We established a new investment in EPAM Systems, Inc. (NYSE:EPAM) during the fourth quarter, as we believe the company’s digital expertise positions it as an “AI Sleeper” – a prime beneficiary as enterprises look for assistance in strategizing, implementing, and maintaining large language models.”

A close-up of a coder at a computer, coding away to bring the latest software service to life.

EPAM Systems, Inc. (NYSE:EPAM) is not on our list of 30 Most Popular Stocks Among Hedge Funds. At the end of the fourth quarter, EPAM Systems, Inc. (NYSE:EPAM) was held by 38 hedge fund portfolios, up from 34 the previous quarter, according to our database.

We discussed EPAM Systems, Inc. (NYSE:EPAM) in another article and shared Baron Fifth Avenue Growth Fund’s views on the company in the previous quarter. In addition, please check out our hedge fund investor letters Q4 2023 page for more investor letters from hedge funds and other leading investors.

 

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Disclosure: None. This article is originally published at Insider Monkey.

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