EPAM Systems (EPAM) Declined on Investor Concerns Over Potential Impact Of GenAI
Baron Funds, an investment management company, released its “Baron Fifth Avenue Growth Fund” second quarter 2023 investor letter. A copy of the same can be downloaded here. The second quarter saw a continuation of the trends seen earlier in the year. The fund was up 16% (Institutional Shares) in the second quarter compared to a 12.8% gain for the Russell 1000 Growth Index and an 8.7% gain for the S&P 500 Index. Year-to-date, the fund is up 38.8% compared to 29.0% and 16.9% gains, respectively, for the indexes. In addition, please check the fund’s top five holdings to know its best picks in 2023.
Baron Fifth Avenue Growth Fund highlighted stocks like EPAM Systems, Inc. (NYSE:EPAM) in the second quarter 2023 investor letter. Headquartered in Newtown, Pennsylvania, EPAM Systems, Inc. (NYSE:EPAM) is a digital platform engineering and software development services provider. On August 17, 2023, EPAM Systems, Inc. (NYSE:EPAM) stock closed at $233.70 per share. One-month return of EPAM Systems, Inc. (NYSE:EPAM) was -1.58%, and its shares lost 47.19% of their value over the last 52 weeks. EPAM Systems, Inc. (NYSE:EPAM) has a market capitalization of $13.533 billion.
Baron Fifth Avenue Growth Fund made the following comment about EPAM Systems, Inc. (NYSE:EPAM) in its second quarter 2023 investor letter:
"EPAM Systems, Inc. (NYSE:EPAM) provides outsourced software development to business customers. Shares declined 24.8% due to investor concerns over the negative potential impact of GenAI, slowing growth and a weaker financial outlook. Greater economic uncertainty is causing a pullback in customer demand as corporate clients temporarily focus on near-term cost optimization rather than more strategic digital transformation projects. Management reduced its full-year guidance twice during the quarter, which was highly unusual given the company’s strong execution track record. We believe this slowdown is temporary and continue to own the stock due to EPAM’s long runway for growth and strong technical capabilities."
Photo by ThisisEngineering RAEng on Unsplash
EPAM Systems, Inc. (NYSE:EPAM) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 31 hedge fund portfolios held EPAM Systems, Inc. (NYSE:EPAM) at the end of second quarter which was 34 in the previous quarter.
We discussed EPAM Systems, Inc. (NYSE:EPAM) in another article and shared White Falcon Capital Management’s views on the company. In addition, please check out our hedge fund investor letters Q2 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.
