Institutional ticker directory tracking stock mentions, long/short ideas, and high-conviction pitches extracted from quarterly hedge fund letters.
| Ticker | Company | Sector | Industry | Pitches | Stance |
|---|---|---|---|---|---|
| Fund / Manager | Thesis Excerpt | Stance | Period / Date | Action |
|---|---|---|---|---|
Night Watch Investment Management Roderick van Zuylen | “Although labeled an AI loser by the market and burdened by temporary delays in corporate IT spending, the company is poised for a growth recovery in 2026 as AI-related projects accelerate. Trading at a steep discount to peers and a low normalized multiple, headcount rationalization should help stabilize earnings.” | BULL | Q4 2025 Dec 31, 2025 | View Pitch |
Night Watch Investment Management Roderick van Zuylen | “Endava (DAVA) is an IT services provider, which the market perceives as an AI loser. Since this industry bills by the hour, the amount of billable work goes down if programming becomes more efficient. The alternative view is that this lower cost enables different kinds of IT projects for DAVA's customers and the lower price per project will be compensated for by higher volumes. When AI just came onto the scene, large corporates delayed their IT investment decisions to figure out how to apply AI to their business. Earlier in 2025, we started seeing the first signs of companies beginning to commit to large AI-related IT spending. Unfortunately, the business uncertainty following the Liberation Day tariffs postponed this recovery. We think 2026 will be the year when Endava returns to growth. Unfortunately, DAVA has also underperformed its peers because of less-than-stellar execution. The company now trades at 0.3x sales, versus 1–2x for peers. We think that normalized net income margins are around 10%, putting the company around 3x P/E once the business stabilizes and rationalizes its headcount. It's even cheaper if they manage to return to growth. BSD Analysis: Endava is an IT services outsourcer tied to digital transformation spending, which sounded non-cyclical until budgets got cut. The model is labor-based, so utilization and pricing power drive results more than product differentiation. Nearshoring tailwinds exist, but competition is intense and clients can pause projects quickly. The company needs consistent bookings momentum to justify premium expectations. Margin pressure often shows up when growth slows and talent costs remain sticky. The bull case is a rebound in discretionary IT spend; the bear case is structural commoditization. Endava is a sentiment stock disguised as services.” | BULL | Q4 2025 Dec 31, 2025 | View Pitch |
Argosy Investors Mike Loeb | “Despite my better judgment, I purchased shares in Endava (DAVA) again based on a number of factors: 1) Endava operating margins are at trough levels, 5-10 percentage points below peers, despite being at parity in the past; 2) all-time low valuation <10x P/E without adjusting for the trough margins; 3) peak pessimism from the market about disruption from AI at the same time AI developments on the ground have actually slowed down, and 4) customer-specific delays at a major customer that have hampered growth relative to peers. There is a lot of pessimism baked into the price of this business and I believe there is a self-help story here that either management or a bidder will ultimately seek to realize. BSD Analysis: The thesis is a classic mean-reversion setup—cyclical demand softness and client-specific headwinds drive trough margins and a depressed multiple. If utilization normalizes and SG&A efficiencies restore margins toward peer levels, EPS power rises materially, enabling re-rating. M&A optionality adds a second path to value realization. Risks: lingering AI disintermediation fears and elongated enterprise budgets. We agree with the bullish stance given asymmetry from low expectations. :contentReference[oaicite:6]{index=6}” | BULL | Q3 2025 Aug 23, 2025 | View Pitch |
Each excerpt above is the manager's commentary on this ticker specifically. The full letter has the rest of their portfolio thinking, risk discussion, and broader institutional context.
