Why Moerus Thinks Tidewater (TDW) Has Created Massive Value Since 2018

Why Moerus Thinks Tidewater (TDW) Has Created Massive Value Since 2018

Tue, September 8, 2026 at 7:54 PM GMT+3 3 min read

• TDW -2.21%
• CL=F +0.67%

Moerus Capital Management LLC, an investment management firm, recently released its "Worldwide Fund " second-quarter 2026 investor letter. A copy of the letter can be downloaded here. The fund navigated a highly bifurcated investment environment in the second quarter of 2026, as investor enthusiasm for artificial intelligence and technology drove a sharp rally in growth stocks while capital moved away from more traditional, value-oriented areas. The Fund's Institutional Class returned 0.14% in Q2, compared with 14.49% for the MSCI ACWI ex USA and 14.93% for the MSCI ACWI, while its first-half return stood at 5.37%, versus 13.69% and 11.25%, respectively, for the two benchmarks. The relative underperformance was primarily driven by the Fund's limited exposure to Information Technology as semiconductor and AI-related stocks surged, while its Energy holdings also gave back some earlier gains as oil prices declined; however, the Fund benefited from several energy-related investments during the first half. Looking ahead, Moerus views the extreme gap between expensive AI-focused areas and neglected parts of the market as an opportunity, maintaining its long-term deep-value approach of investing in unpopular businesses and assets at significant discounts to intrinsic value and using market volatility to identify potentially attractive investments. In addition, please check the Fund's top five holdings to know its best picks in 2026.

In its second-quarter 2026 investor letter, Moerus Worldwide Fund highlighted stocks like Tidewater Inc. (NYSE:TDW). Tidewater Inc. is an offshore supply vessel operator that provides support services to the offshore energy industry. Moerus identified Tidewater as one of the Fund's five most significant positive contributors during the first half of 2026. The one-month return of Tidewater Inc. (NYSE:TDW) was 3.68% while its shares traded between $46.65 and $101.58 over the last 52 weeks. On September 7, 2026, Tidewater Inc. (NYSE:TDW) stock closed at approximately $94.26 per share, with a market capitalization of about $4.61 billion.

Moerus Worldwide Fund stated the following regarding Tidewater Inc. (NYSE:TDW) in its Q2 2026 investor letter:

"Similarly, we'd argue that offshore supply vessel (OSV) operator Tidewater Inc. (NYSE:TDW) has grown the per share value of its business dramatically since 2018 through a combination of a relentless focus on costs, share repurchases, and most notably, the utilization of its OSV industry-leading balance sheet to make three acquisitions of assets (with a fourth pending) from distressed and/or motivated sellers at deep discounts to replacement costs during a years-long industry depression."

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Tidewater Inc. (NYSE:TDW) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. As per our database, 31 hedge fund portfolios held Tidewater Inc. (NYSE:TDW) at the end of the first quarter, which was 31 in the previous quarter. While we acknowledge the risk and potential of Tidewater Inc. (NYSE:TDW) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. 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 City Different Investments' views on the company. In addition, please check out our hedge fund investor letters Q1 2026 page for more investor letters from hedge funds and other leading investors.

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This article is originally published at Insider Monkey.