Activist hedge fund Engine Capital is pushing EPAM Systems to boost share buybacks or consider a sale after AI fears drove its stock down 42% this year to a $5.9bn market value. Engine revealed its 1.5% stake in a letter to EPAM’s board, urging the company to repurchase 60-80% of outstanding shares by end-2028 using its $750mn cash pile and future free cash flows. EPAM, which employs over 50,000 IT professionals providing tech outsourcing services, has been hit by a sector-wide sell-off over AI disruption risks.

Engine’s managing partner Arnaud Ajdler warned that if the board lacks confidence to aggressively repurchase shares, it should initiate a formal strategic review to assess buyer interest. Founded in 2013 with $1.5bn AUM, Engine has previously pushed for Uni First’s sale to Cintas and the break-up of Smiths Group. EPAM and Engine did not respond to requests for comment.