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Why EPAM Systems (EPAM) Stock is a Compelling Investment Case

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Alex Smith
·3 min read
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Polen Capital Management recently released its Q3 2020 Investor Letter, a copy of which you can download here. During the third quarter of 2020, the Polen U.S. SMID Company Growth Composite Portfolio returned 7.11% gross of fees, while the Russell 2500 Growth Index was up 9.37%. You should check out Polen Capital’s top 5 stock picks for investors to buy right now, which could be the biggest winners of this year.

In the said letter, Polen Capital highlighted a few stocks and EPAM Systems Inc. (NYSE:EPAM) is one of them. EPAM Systems Inc. (NYSE:EPAM) specializes in product development, digital platform engineering, and digital and product design. Year-to-date, EPAM Systems Inc. (NYSE:EPAM) stock gained 54.1% and on November 11th it had a closing price of $326.97. Here is what Polen Capital said:

"EPAM Systems was another top contributor during the quarter. EPAM is a leading global IT services firm that provides product development and software engineering solutions to clients worldwide. Some of the services and solutions EPAM provides its clients include product research, customer experience design and prototyping, program management, and custom application development services. These solutions are increasingly necessary as companies seek to strengthen their online presence, better leverage technology in their own products and services, and improve the customer experience and engagement. EPAM has seen its top customers deepen their relationship and spending with the company, highlighting the importance and mission critical nature of the services and solutions EPAM provides. We continue to believe EPAM’s competitive position remains strong, its value proposition to clients is attractive, and that the company can grow and compound its value at a mid-teens rate or greater for the foreseeable future."

In Q2 2020, the number of bullish hedge fund positions on EPAM Systems Inc. (NYSE:EPAM) stock increased by about 4% from the previous quarter (see the chart here), so a number of other hedge fund managers believe in EPAM's growth potential. Our calculations showed that EPAM Systems Inc. (NYSE:EPAM) isn't ranked among the 30 most popular stocks among hedge funds.

The top 10 stocks among hedge funds returned 185% since the end of 2014 and outperformed the S&P 500 Index ETFs by more than 109 percentage points. We know it sounds unbelievable. You have been dismissing our articles about top hedge fund stocks mostly because you were fed biased information by other media outlets about hedge funds' poor performance. You could have doubled the size of your nest egg by investing in the top hedge fund stocks instead of dumb S&P 500 ETFs. Below you can watch our video about the top 5 hedge fund stocks right now. All of these stocks had positive returns in 2020.

Video: Top 5 Stocks Among Hedge Funds

At Insider Monkey we scour multiple sources to uncover the next great investment idea. For example, Federal Reserve has been creating trillions of dollars electronically to keep the interest rates near zero. We believe this will lead to inflation and boost real estate prices. So, we recommended this real estate stock to our monthly premium newsletter subscribers. We go through lists like the 10 most profitable companies in the world to pick the best large-cap stocks to buy. Even though we recommend positions in only a tiny fraction of the companies we analyze, we check out as many stocks as we can. We read hedge fund investor letters and listen to stock pitches at hedge fund conferences. You can subscribe to our free daily newsletter on our website:

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