White Falcon Capital Management, an investment fund manager, released its fourth-quarter 2025 investor letter. A copy of the letter can be downloaded here. The White Falcon portfolio returned 5.6% (net of fees) in Q4 2025, resulting in a yearly return of 28.4%. The year has been notable, particularly with the “tariff tantrum” in April 2025 that saw markets drop nearly 20%, now fading into the past. Overall, the portfolio performed well, with only a few companies affecting a solid majority of positive results. The White Falcon portfolio consists of 20-25 carefully selected stocks that align with its quality and valuation standards, focusing on generating positive absolute returns adjusted for risk over a full market cycle. The portfolio’s preferred metric, the rolling three-year annualized return, currently stands at 25.9% CAGR, outpacing most major indices, including the S&P 500. As a long-term compounder, the firm is optimistic about its long-term prospects. The firm anticipates a significant increase in leverage associated with AI and expects major private companies to go public through IPOs. Please review the Portfolio’s top five holdings to gain insights into their key selections for 2025.
In its fourth-quarter 2025 investor letter, White Falcon Capital Management highlighted stocks like EPAM Systems, Inc. (NYSE:EPAM). EPAM Systems, Inc. (NYSE:EPAM) is a leading digital platform engineering and software development services provider. On March 05, 2026, EPAM Systems, Inc. (NYSE:EPAM) stock closed at $144.58 per share. One-month return of EPAM Systems, Inc. (NYSE:EPAM) was -22.55%, and its shares lost 27.27% over the past 52 weeks. EPAM Systems, Inc. (NYSE:EPAM) has a market capitalization of $7.987 billion.
White Falcon Capital Management stated the following regarding EPAM Systems, Inc. (NYSE:EPAM) in its fourth quarter 2025 investor letter:
“EPAM Systems, Inc. (NYSE:EPAM) is an engineering‑driven IT services firm that sits at the critical intersection of enterprise technology and real‑world implementation. It was deemed as an AI loser but the market is slowly realizing that, (1) a lot of corporations are still not on the cloud, (2) core systems will need to be modernized before AI is deployed, and (3) custom agents will require high-end custom development, and (4) EPAM can incorporate AI and productivity into its delivery organisation (e.g. its recent partnership with Cursor) and can grow without adding headcount. EPAM is currently trading at 11x EBITDA and 17x EPS based on this year’s estimates. We expect EPAM to grow revenues in the mid‑teens and earnings in the high‑teens over the next several years. If the company executes on that trajectory, the share price should broadly track earnings growth over time.”
EPAM Systems, Inc. (NYSE:EPAM) is not on our list of 40 Most Popular Stocks Among Hedge Funds. According to our database, 44 hedge fund portfolios held EPAM Systems, Inc. (NYSE:EPAM) at the end of the fourth quarter, up from 41 in the previous quarter. In Q4 2025, EPAM Systems, Inc. (NYSE:EPAM) reported revenue of over $1.4 billion, a year-over-year increase of 12.8% on a reported basis. While we acknowledge the risk and potential of EPAM Systems, Inc. (NYSE:EPAM) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than EPAM Systems, Inc. (NYSE:EPAM) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered EPAM Systems, Inc. (NYSE:EPAM) and shared a list of best information technology services stocks to buy. In addition, please check out our hedge fund investor letters Q4 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.
