Darspal S Mann
Long/short equity, growth at reasonable price, special situations, deep value

Luxoft: A Tale Of Two Elections Leading To One Opportunity

For anybody following the IT services sector, it's hard to miss the divergence between Luxoft Holding Inc. (NYSE:LXFT) stock, which has a majority of its operations out of Ukraine and Russia, and stocks of Indian IT companies. Both Luxoft and Indian IT services sector stocks have been affected by political events in their respective geographies, but fundamentals suggest that Luxoft offers an opportunity, whether analyzed in isolation or relative to the Indian IT stocks.

Looking at the stocks, investors are either over-analyzing the effect of politics on the fundamentals of IT services sector or under-appreciating the power of these businesses, independent of the politics of the land. While Luxoft stock has suffered due to investor concerns around political...

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