California-based Tensile Capital Management increased its position in Vertex by 160,559 shares in the third quarter, despite a $34.4 million decrease in position value. The fund’s largest holding now stands at 3.8 million Vertex shares valued at $94.3 million, representing about 11.8% of AUM as of September 30.

Tensile Capital Management LP disclosed a buy of 160,559 shares of Vertex in the third quarter, increasing its stake to 3.8 million shares valued at $94.3 million as of September 30. This move made Vertex the fund’s largest position, accounting for about 11.8% of its 13F AUM.

Vertex shares were priced at $19.68 as of Friday, down 65% over the past year. The company’s market capitalization is $3.1 billion, with revenue of $732.2 million and a net income of ($53.6 million) over the trailing twelve months period.

Vertex offers tax technology solutions for corporations in various sectors, generating revenue through software licenses, SaaS subscriptions, and tax-related outsourcing services. The company targets large enterprises and multinational corporations seeking integrated tax compliance solutions.

Vertex’s collapse presents a contrarian setup with strong fundamentals. Tensile’s increased exposure, despite the market value drop, reflects confidence in Vertex’s potential. The company’s recent financial performance includes double-digit revenue growth, cloud revenue growth, and a $150 million share-repurchase program.

Vertex, a leading provider of tax technology software and services, caters to enterprise clients with integrated tax compliance solutions. Its recurring revenue streams and broad product suite position it as a strategic partner for organizations seeking to streamline tax operations and manage regulatory risk.

Read more at Yahoo Finance: Why One Fund Lifted Its $94.3 Million Position Even as Shares Sank