White Falcon Capital Management, an investment fund manager, released its first-quarter 2025 investor letter. A copy of the letter can be downloaded here. The fund’s performance for the recent quarter was below expectations, as the gains from gold and silver royalty holdings were unable to cover the losses in some of the larger positions. On a positive note, the portfolio company, Converge Technologies (CTS), was acquired at a significant premium during this time. In the quarter, the fund returned -6.7% compared to a -4.4% return for the S&P 500 (CAD), -1.2 % for the MSCI All Country (CAD), and 1.5% for the S&P TSX TR. In addition, please check the fund’s top five holdings to know its best picks in 2025.
In its first-quarter 2025 investor letter, White Falcon Capital Management highlighted stocks such as EPAM Systems, Inc. (NYSE:EPAM). EPAM Systems, Inc. (NYSE:EPAM) is a digital platform for engineering and software development services. The one-month return of EPAM Systems, Inc. (NYSE:EPAM) was -5.76%, and its shares lost 33.48% of their value over the last 52 weeks. On April 25, 2025, EPAM Systems, Inc. (NYSE:EPAM) stock closed at $159.12 per share with a market capitalization of $9.01 billion.
White Falcon Capital Management stated the following regarding EPAM Systems, Inc. (NYSE:EPAM) in its Q1 2025 investor letter:
“Our IT services companies – Endava and EPAM Systems, Inc. (NYSE:EPAM) – have been the main detractors for our portfolio. Tariff uncertainty will likely delay client decision making and affect IT spend. While we have been early, which, we admit, can sometimes be indistinguishable from being wrong, we maintain that Endava and EPAM remain a compelling investment opportunity due to their (1) strong balance sheets, (2) solid position in the growing IT services sector, particularly in digital transformation and AI implementation, (3) founder led management teams, and (4) cheap valuation where we believe they are trading for a trough multiple of trough earnings. Despite weak recent earnings from Wipro and Infosys, their stocks avoided further declines, suggesting the market may have already priced in the current slowdown.”
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. As per our database, 56 hedge fund portfolios held EPAM Systems, Inc. (NYSE:EPAM) at the end of the fourth quarter, compared to 39 in the third quarter. While we acknowledge the potential of EPAM Systems, Inc. (NYSE:EPAM) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
In another article, we covered EPAM Systems, Inc. (NYSE:EPAM) and shared the list of most oversold large cap stocks to invest in. In addition, please check out our hedge fund investor letters Q1 2025 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.