Group 1: Fund 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] Group 2: Valaris Limited (NYSE:VAL) Overview - Valaris Limited, an offshore contract drilling services provider, achieved a one-month return of 7.04% and a 52-week gain of 34.01%, closing at $59.93 per share with a market capitalization of $4.268 billion on December 5, 2025 [2] - Valaris Limited was held by 60 hedge fund portfolios at the end of Q3 2025, an increase from 57 in the previous quarter [4] Group 3: Investment Strategy and Outlook - Night Watch Investment Management has fully exited its energy positions, including Valaris Limited, due to a pause in offshore spending that began in 2024, with expectations for a resumption not occurring until 2027 at the earliest [3] - The company noted a modest loss of 2.67% on its positions in Valaris, Noble Energy, and TDW, marking energy as the only significant detractor from performance since inception [3] - While acknowledging Valaris Limited's potential, the company believes that certain AI stocks present greater upside potential and lower downside risk [4]