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

Company Performance - Night Watch Investment Management reported a 4.28% net appreciation in its fund LP for Q3 2025, with a year-to-date performance of 25.88% [1] - The portfolio continued to perform strongly during the quarter, coinciding with a robust market recovery [1] Tidewater Inc. Overview - Tidewater Inc. (NYSE:TDW) provides offshore support vessels and marine support services to the offshore energy industry, with a one-month return of 5.40% and a 52-week gain of 21.66% [2] - As of December 5, 2025, Tidewater Inc. shares closed at $57.63, with a market capitalization of $2.856 billion [2] Investment Strategy and Insights - Night Watch Investment Management has fully exited its energy positions, including Tidewater Inc., due to a pause in offshore spending that began in 2024, with no expected resumption until at least 2027 [3] - The company experienced a modest loss of 2.67% on its energy positions, which have been the only significant detractor from performance since inception [3] Hedge Fund Interest - Tidewater Inc. was held by 40 hedge fund portfolios at the end of Q3 2025, an increase from 29 in the previous quarter [4] - Despite recognizing the potential of Tidewater Inc. as an investment, the company believes that certain AI stocks present greater upside potential and lower downside risk [4]