Here's Robotti Value Investors' Analysis on Tidewater's (TDW) Momentum

Robotti Value Investors, a boutique asset manager focused on value, published its fourth-quarter 2025 investor letter. You can download a copy here. The firm specializes in spotting opportunities in cyclical sectors where fundamentals are not yet recognized by the market. The letter mentioned that 2025 is proving Dornbusch’s theorem true, with several notable market developments. These include an increase in gold prices and a broader geographic leadership in markets. It also pointed out emerging opportunities in housing, offshore industries, and data storage, which exhibit misunderstood fundamentals, better economics, and narratives that lag behind actual market conditions. Please review the firm’s top five holdings to gain insights into their key selections for 2025.

In its fourth-quarter 2025 investor letter, Robotti Value Investors highlighted stocks like Tidewater Inc. (NYSE:TDW). Tidewater Inc. (NYSE:TDW) provides offshore support vessels and marine support services to the offshore energy industry. The one-month return for Tidewater Inc. (NYSE:TDW) was 21.72%, and its shares gained 28.57% over the last 52 weeks. On February 13, 2026, Tidewater Inc. (NYSE:TDW) stock closed at $69.93 per share, with a market capitalization of $3.47 billion.

Robotti Value Investors stated the following regarding Tidewater Inc. (NYSE:TDW) in its fourth quarter 2025 investor letter:

"In recent years, we experienced this firsthand during the rapid repricing in the offshore energy sector, when stocks such as Tidewater Inc. (NYSE:TDW) moved from deeply discounted levels to reflecting a large portion of expected earnings growth in a matter of months. The rapidity of the move surprised many, but the groundwork had been laid by years of underinvestment and consolidation.

Between 2020 and 2024, offshore services began to recover as the consequences of that reset became clear. The extended downturn permanently removed a meaningful portion of global supply. Rightsizing and operational discipline drove substantial efficiency gains, making many offshore projects economic even at oil prices well below recent levels. Notably, this has persisted even as Brent prices have fallen roughly 25 percent over the past year.

The result has been a sharp tightening in the supply-demand balance. Companies such as Tidewater and offshore drillers that emerged from restructuring with improved balance sheets were positioned to benefit disproportionately. With consolidated fleets, restored capital discipline, and replacement costs far above asset values, pricing power returned to a sector long characterized by extreme cyclicality. Equity prices responded accordingly..." (Click here to read the full text)

Tidewater Inc. (NYSE:TDW) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 40 hedge fund portfolios held Tidewater Inc. (NYSE:TDW) at the end of the third quarter, which was 29 in the previous quarter. While we acknowledge the potential of Tidewater Inc. (NYSE:TDW)as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

In another article, we covered Tidewater Inc. (NYSE:TDW) and shared Black Bear Value Fund's views on the company. In addition, please check out our hedge fund investor letters Q4 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.