Night Watch Investment Management Regained Confidence in Brookdale Senior Living (BKD). Here’s How

Night Watch Investment Management, an investment management firm, released its third-quarter 2025 investor letter. A copy of the letter can be downloaded here. In the third quarter, the fund LP appreciated by 4.28% net of fees, and YTD, its performance stood at 25.88%. The portfolio continued its strong performance in the quarter. The market also experienced a strong recovery in the quarter. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its third-quarter 2025 investor letter, Night Watch Investment Management highlighted stocks such as Brookdale Senior Living Inc. (NYSE:BKD). Headquartered in Brentwood, Tennessee, Brookdale Senior Living Inc. (NYSE:BKD) operates senior living communities. The one-month return for Brookdale Senior Living Inc. (NYSE:BKD) was 12.83%, and its shares gained 91.71% over the last 52 weeks. On December 04, 2025, Brookdale Senior Living Inc. (NYSE:BKD) stock closed at $10.64 per share, with a market capitalization of $2.529 billion.

Night Watch Investment Management stated the following regarding Brookdale Senior Living Inc. (NYSE:BKD) in its third quarter 2025 investor letter:

“We have reinitiated a position in Brookdale Senior Living Inc. (NYSE:BKD). The bull case for senior living facilities (SLF) is strong: baby boomers are about to turn 80+ starting next year, increasing the demand for SLF. In anticipation of this uptick in demand, the industry overbuilt in 2017. The industry was then hit by Covid which shrunk the target population, followed by a nursing shortage which squeezed margins. Operating SLFs has been a very poor business model in the last decade. Over the last 8 years, the construction of new facilities has come to a halt and the orderbook is at a multi-decade low, right at the moment demand is about to tick up.

We have owned Brookdale during 2024, but grew impatient with a management team that could not manage to increase the occupancy of their facilities. In 2025, an activist shareholder was successful in the replacement of the management team, after which Brookdale has been rapidly closing the gap with peers. This gave us the confidence to buy back into the name.”

Brookdale Senior Living Inc. (NYSE:BKD) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 35 hedge fund portfolios held Brookdale Senior Living Inc. (NYSE:BKD) at the end of the third quarter, which was 35 in the previous quarter. While we acknowledge the risk and potential of Brookdale Senior Living Inc. (NYSE:BKD) 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 are looking for an AI stock that is more promising than Brookdale Senior Living Inc. (NYSE:BKD) and that has 10,000% upside potential, check out our report about this cheapest AI stock.

In another article, we covered Brookdale Senior Living Inc. (NYSE:BKD) and shared the list of stocks with whopping gains. In addition, please check out our hedge fund investor letters Q3 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.