What Led Night Watch Investment Management to Exit Tidewater (TDW)

In its third-quarter 2025 capitalist letter, Night Watch Investment Management highlighted stocks specified arsenic Tidewater Inc. (NYSE:TDW). Tidewater Inc. (NYSE:TDW) provides offshore enactment vessels and marine enactment services to the offshore vigor industry. The one-month instrumentality for Tidewater Inc. (NYSE:TDW) was 5.40%, and its shares gained 21.66% implicit the past 52 weeks. On December 05, 2025, Tidewater Inc. (NYSE:TDW) banal closed astatine $57.63 per share, with a marketplace capitalization of $2.856 billion.

Night Watch Investment Management stated the pursuing regarding Tidewater Inc. (NYSE:TDW) successful its 3rd 4th 2025 capitalist letter:

"We person afloat exited our vigor positions (VAL, Tidewater Inc. (NYSE:TDW), NE). We had a presumption connected the concern rhythm of offshore vigor infrastructure, which bottomed successful 2021. Given that determination is nary caller infrastructure nether construction, we believed the rhythm could support going for galore years to come. However, we did not foresee the intermission successful offshore spending that started successful 2024. We bash not expect a resumption of spending until 2027 astatine the earliest. In the meantime, companies similar Noble Energy commercialized astatine ~10x Free currency flow, which is simply not arsenic inexpensive if your outgo of indebtedness is 8% and your assets person a constricted beingness span. In total, we mislaid a precise humble 2.67% connected our VAL, NE and TDW position. Since inception, vigor has been our lone important detractor from performance."

Tidewater Inc. (NYSE:TDW) is not connected our database of 30 Most Popular Stocks Among Hedge Funds. As per our database, 40 hedge money portfolios held Tidewater Inc. (NYSE:TDW) astatine the extremity of the 3rd quarter, which was 29 successful the erstwhile quarter. While we admit the imaginable of Tidewater Inc. (NYSE:TDW) arsenic an investment, we judge definite AI stocks connection greater upside imaginable and transportation little downside risk. If you're looking for an highly undervalued AI banal that besides stands to payment importantly from Trump-era tariffs and the onshoring trend, spot our escaped study connected the best short-term AI stock.

In another article, we covered Tidewater Inc. (NYSE:TDW) and shared Black Bear Value Fund's views connected the company. In addition, delight cheque retired our hedge money capitalist letters Q3 2025 page for much capitalist letters from hedge funds and different starring investors.