Black Bear Value Partners, an investment advisory firm, issued its second-quarter 2026 investor letter. A copy of the letter can be downloaded here. The Black Bear Value Fund lost -3.6% in March, bringing the year-to-date return to +1.5%. Meanwhile, the S&P 500 dropped- 1.0% in June and has a YTD return of +10.2%. The HFRI Index returned +0.5% in June and +7.1% YTD. The fund is optimistic about its long-term prospects despite the current performance-value gap. It maintains a defensive stance, investing in quality businesses at reasonable prices. Its short book targets businesses with weak fundamentals. Portfolio businesses are transitioning into cash-generative phases, generating substantial free cash flow, paying dividends, repurchasing shares, and enhancing their competitive edge. Please review the top five holdings to understand their key strategies for 2026.
In its Q2 2026 investor letter, Black Bear Value Fund highlighted Tidewater Inc. (NYSE:TDW). Tidewater Inc. (NYSE:TDW) provides offshore support vessels and marine support services to the offshore energy industry. On July 9, 2026, Tidewater Inc. (NYSE:TDW) closed at $70.69 per share, reflecting a market capitalization of 3.51 billion. Tidewater Inc. (NYSE:TDW) posted a one-month return of -7.14%, while its shares gained 35.75% over the past 52 weeks.
Black Bear Value Fund the following regarding Tidewater Inc. (NYSE:TDW) in its Q2 2026 investor update:
“Tidewater Inc. (NYSE:TDW) declined approximately 20% during the second quarter but remains up roughly 32% year-to-date. Tidewater is the world’s largest owner and operator of offshore support vessels (OSVs), providing essential marine services to the offshore energy industry. Its vessels transport personnel and equipment, tow and anchor drilling rigs, and support offshore construction and production activities.
While the near-term outlook has become somewhat less certain, we remain constructive on the long-term fundamentals. As growth from mature onshore resource plays such as the Permian moderates, global energy demand will increasingly require new offshore production. We believe offshore capital spending is likely to recover over the next one to two years as producers commit capital to replacing depleted reserves.….” (Click here to read the full text)
Tidewater Inc. (NYSE:TDW) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 31 hedge fund portfolios held Tidewater Inc. (NYSE:TDW) at the end of the first quarter, compared to 36 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 are looking for an AI stock that is more promising than Tidewater Inc. (NYSE:TDW) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered Tidewater Inc. (NYSE:TDW) and shared Third Avenue Value Fund’s views on the company. In its Q1 2026, investor letter Black Bear Value Fund noted that Tidewater Inc. (NYSE:TDW) surged approximately 65% as investors favored energy and energy-related stocks. In addition, please check out our hedge fund investor letters Q2 2026 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.
