Baron Funds: “Tidewater (TDW) has the Luxury of Time and Capital to Invest and Grow”

Third Avenue Management, an investment management firm, published its “Small-Cap Value Fund” first quarter 2022 investor letter – a copy of which can be downloaded here. The Third Avenue Small-Cap Value Fund (the “Fund”) declined 0.44% during the first quarter of 2022 versus a decline of 2.40% for the Fund’s most relevant benchmark, the Russell 2000 Value Index1 (the “Index”). Try to spend some time taking a look at the fund’s top 5 holdings to be informed about their best picks for 2022.

In its Q1 2022 investor letter, Third Avenue Management Small-Cap Value Fund mentioned Tidewater Inc. (NYSE:TDW) and explained its insights for the company. Founded in 1956, Tidewater Inc. (NYSE:TDW) is a New Orleans, Louisiana-based publicly traded international petroleum service company with a $1.0 billion market capitalization. Tidewater Inc. (NYSE:TDW) delivered a 124.00% return since the beginning of the year, while its 12-month returns are up by 66.71%. The stock closed at $23.99 per share on June 15, 2022.

Here is what Third Avenue Management Small-Cap Value Fund has to say about Tidewater Inc. (NYSE:TDW) in its Q1 2022 investor letter:

“Within the Fund, a rapid rise in oil prices benefitted the investment in oil services company, Tidewater (NYSE:TDW), which more than doubled in price last quarter. The time-arbitrage/special-situations bucket is predominantly comprised of energy services company Tidewater, and other out of favor, misunderstood companies such as Hamilton Beach Brands. All of these companies are cyclical and currently out of favor, but given their strong financial positions, Fund Management believes they have the luxury of time and capital to invest and grow until the clouds dissipate.”

Our calculations show that Tidewater Inc. (NYSE:TDW) fell short and didn’t make it on our list of the 30 Most Popular Stocks Among Hedge Funds. Tidewater Inc. (NYSE:TDW) was in 14 hedge fund portfolios at the end of the first quarter of 2022, compared to 13 funds in the previous quarter. Tidewater Inc. (NYSE:TDW) delivered a 23.85% return in the past 3 months.

In July 2021, we also shared another hedge fund’s views on Tidewater Inc. (NYSE:TDW) in another article. You can find other investor letters from hedge funds and prominent investors on our hedge fund investor letters 2022 Q1 page.

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