The curated database of hedge funds that publish investor letters. Research by geography, strategy, and schools of thought.
| # | Fund | Strategy | Style | Geography | AUM | Latest Letter |
|---|---|---|---|---|---|---|
Night Watch Investment Partners LP delivered a net return of 0.84% in the third quarter of 2026, bringing year-to-date performance to 16.83% net of fees and achieving an annualized net return of 18.45% since inception. Strong performance in July, propelled by an unwinding of artificial intelligence trades, was partially offset in September by rising inflation expectations and broad-based market risk aversion. Performance was led by financial services firm Marex, along with portfolio acquisitions in Distribution Solutions Group and Leopalace21. Universal Technical Institute detracted due to student acquisition uncertainties stemming from conversational and agentic search interfaces. The manager maintains an actively hedged global value posture, with roughly 120% gross long exposure and 95% to 100% net exposure, backed by a 20% index short book. Key downside risks include persistent geopolitical instability, elevated energy costs, and upward interest rate pressures. To insulate against macro chaos, positioning is directed toward counter-cyclical beneficiaries, domestic refiners, and European specialty chemical distributors.
Night Watch compounds capital across all market cycles by pairing disciplined value investments featuring specific catalysts with counter-cyclical businesses designed to thrive during volatility.
Night Watch maintains a cautious outlook driven by rising inflation expectations, creeping interest rates, and ongoing geopolitical instability. The manager plans to preserve capital and compound through market turbulence by pairing index shorts with counter-cyclical positions, refinery margins, and international diversification across Europe and Asia.
As of Oct 1, 2026
The management team brings over two decades of institutional portfolio management experience with proven track records across market cycles. Roderick van Zuylen serves as Chief Investment Officer with extensive experience from senior roles at Kempen Capital Management and Laaken Asset Management. Eileen Ke functions as co-founder and Chief Operating Officer, while Martijn Kleinbussink contributes specialized analytical expertise as Research Consultant. The collective leadership background emphasizes value-oriented investment approaches with catalyst identification capabilities developed through previous institutional roles. The team has demonstrated exceptional performance since inception with a 21.03% CAGR and 23.61% net returns in 2025, showcasing their ability to generate substantial alpha while maintaining disciplined risk management through various market conditions.
Lead Portfolio Manager
Moderate Conviction Bullish
Market Conviction
Night Watch demonstrates solid conviction with a 27-position portfolio where the top five positions account for over 39% of capital, led by Marex at 13.6%. The manager provides detailed investment logic for key themes and maintains positions despite near-term headwinds. However, conviction is tempered by broad short index hedging and basket-based exposure in refiners and distributors.
Growth Outlook
The manager explicitly notes being cautious due to creeping interest rates, high oil prices, and unpredictable geopolitical threats. Commentary repeatedly refers to the global economic environment as chaotic and reality-TV-like. Significant short index hedging is maintained to insulate the portfolio against market drawdowns.
Risk Appetite
Risk posture is moderately balanced with 120% gross long exposure offset by roughly 20% in market index shorts to maintain 95% to 100% net exposure. The portfolio carries virtually no cash (-0.1%), but capital is intentionally concentrated in counter-cyclical businesses and commodity-driven hedges.
Capital Deployment
Net capital allocation is fully invested with cash at -0.1%, reflecting a stable deployment state. Portfolio turnover centers on rotational shifts into specialty chemical distributors and holding acquired companies rather than aggressive cash raises or drawdowns.
Forward Guidance
The manager has recently established new positions in European specialty chemical distributors and intends to hold detracted names like UTI through operational transitions. Deployment focuses on selective, catalyst-driven niches rather than broad equity expansion.
Language Signal
Language is balanced with cautious macro vocabulary including risk-off sentiment, chaos, shortages, export controls, and creeping rates. This caution is balanced by optimistic micro terms like underappreciated growth, 30%+ ROE, inflecting sectors, and low multiples.
Perceived Risk
Perceived macro risk is notably elevated, with specific attention given to drone strikes on refining assets, the closure of the Strait of Hormuz, Houthi attacks, trade tariffs, inflation resurgence, and potential central bank loss of yield curve control.
Opportunity Density
Opportunities are deemed scarce in correlated broad equities but attractive in distinct counter-cyclical and out-of-favor niches. The manager points to specific value sets in European distributors and US refiners emerging from prolonged bear markets.
Time Horizon
The firm articulates a multi-year compounding view, noting that holdings like Marex will be significantly better businesses over a few years. The strategy also targets identifiable catalysts such as earnings inflections and post-destocking cycles within a 2 to 3-year window.
Top Conviction Themes
Key Catalysts
Every insight in this database connects to the original source. Read the actual thesis, see the actual concerns, and make your own call.
Buyside Digest has no business relationship, partnership, agency, sponsorship, endorsement, or affiliation with Night Watch Investment Management or any other manager whose content appears on the Service, except where expressly stated. We do not receive Manager Content directly from managers in most cases; content is collected from publicly available sources. Managers have not necessarily reviewed, approved, authorized, or endorsed our display of their content, our editorial commentary, our metadata extraction, or our classifications. Use of a manager’s name is for accurate attribution and identification purposes only, under principles of nominative fair use.
Buyside Digest does not independently verify the regulatory status, registrations, licensing, qualifications, credentials, or professional standing of managers whose content appears on the Service. We do not represent that managers are properly registered with applicable regulatory bodies, that their content complies with applicable securities laws, or that their performance representations are accurate. Inclusion of a manager in our database is based on the publicly available nature of their content, not on our verification of their regulatory status or content compliance. Users are responsible for conducting their own due diligence on any manager.
Performance data, returns, assets under management (“AUM”), and similar figures displayed on this page are sourced from publicly available manager communications (including investor letters), public filings, or other third-party sources. Buyside Digest does not independently verify performance figures, calculate returns, or audit manager-reported data. Such figures: May be selectively reported by the manager; May use non-standard calculation methodologies; May not reflect fees, expenses, taxes, or other costs; May be inconsistent across reporting periods; May be outdated. Past performance is not indicative of future results. Performance figures should not be relied upon for investment decisions without independent verification. Users should request audited performance data directly from the manager and conduct their own due diligence.
