Night Watch Investment Management adds tech, exits energy positions among Q3 trades

Night Watch Investment Management LP, an investment management firm, released its third-quarter 2025 investor letter. In the third quarter, the fund LP appreciated by 4.28% net of fees, and YTD, its performance stood at 25.88%.

The fund reinitiated a position in Brookdale Senior Living (NYSE:BKD [https://seekingalpha.com/symbol/BKD]) amid increased demand for senior living facilities as baby boomers are about to turn 80+ starting next year. The fund made a fresh purchase in hard disc drive space as it is expected to benefit from AI-related spending. The demand for storage capacity is growing rapidly on the back of data center investments, leading to new stakes in Western Digital Corp (NASDAQ:WDC [https://seekingalpha.com/symbol/WDC]) and Seagate (NASDAQ:STX [https://seekingalpha.com/symbol/STX]).

The fund fully exited energy positions, Valaris (NYSE:VAL [https://seekingalpha.com/symbol/VAL]), Tidewater (NYSE:TDW [https://seekingalpha.com/symbol/TDW]) and Noble (NYSE:NE [https://seekingalpha.com/symbol/NE]) on the view that there is no new infrastructure under construction. The fund believed the cycle could keep going for many years to come.

The fund currently holds ~3.5% in cash after taking profits on some positions.

Source [https://static1.squarespace.com/static/65554ad23182d210f95181f7/t/68deab43b6d56d7b70f59540/1759423299478/Q3+2025+Letter+to+Partners.pdf]

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