Night Watch Investment Management’s Strategic Decision to Exit Noble Corporation plc (NE)

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 Noble Corporation plc (NYSE:NE). Noble Corporation plc (NYSE:NE) is an offshore drilling contractor for the oil and gas industry. The one-month return for Noble Corporation plc (NYSE:NE) was 12.44%, and its shares gained 1.20% over the last 52 weeks. On December 05, 2025, Noble Corporation plc (NYSE:NE) stock closed at $205.39 per share, with a market capitalization of $3.74 billion.

Night Watch Investment Management stated the following regarding Noble Corporation plc (NYSE:NE) in its third quarter 2025 investor letter:

“We have fully exited our energy positions (VAL, TDW, Noble Corporation plc (NYSE:NE)). We had a view on the business cycle of offshore energy infrastructure, which bottomed in 2021. Given that there is no new infrastructure under construction, we believed the cycle could keep going for many years to come. However, we did not foresee the pause in offshore spending that started in 2024. We do not expect a resumption of spending until 2027 at the earliest. In the meantime, companies like Noble Energy trade at ~10x Free cash flow, which is simply not as cheap if your cost of debt is 8% and your assets have a limited life span. In total, we lost a very modest 2.67% on our VAL, NE and TDW position. Since inception, energy has been our only significant detractor from performance.”

Is Noble Corporation plc (NE) the Oversold Stock to Buy in 2025 Amid Inflation Fears?

Noble Corporation plc (NYSE:NE) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 47 hedge fund portfolios held Noble Corporation plc (NYSE:NE) at the end of the third quarter, compared to 49 in the previous quarter. While we acknowledge the risk and potential of Noble Corporation plc (NYSE:NE) 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 Noble Corporation plc (NYSE:NE) and that has 10,000% upside potential, check out our report about this cheapest AI stock.

In another article, we covered Noble Corporation plc (NYSE:NE) and shared the list of best retirement stocks to buy according to analysts. 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.