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Black Bear Value Partners, an investment advisory firm, issued its first-quarter 2026 investor letter. A copy of the letter can be downloaded here. The Black Bear Value Fund gained 1.9% in March, bringing the year-to-date return to 13.2%. Meanwhile, the S&P 500 dropped -5.0% in March and has a YTD return of -4.4%. So far in 2026, both long and short investments in the Fund have been profitable. The portfolio includes companies with strong growth prospects and low risk of long-term capital loss. Long-term trends are expected to favor these businesses for years ahead. Although short positions are under scrutiny for their fundamentals, suggesting further declines. Issues such as chronic underinvestment and recent developments in Iran threaten the energy and commodity sectors. Concerns about the private credit market also remain. Overall, the portfolio outlined how long-term investment ideas can generate significant profits if successful. In addition, you can check the Fund’s top five holdings to determine its best picks for 2026.

In its first-quarter 2026 investor letter, Black Bear Value Fund highlighted stocks such as Tidewater Inc. (NYSE:TDW). Tidewater Inc. (NYSE:TDW) provides offshore support vessels and marine support services to the offshore energy industry. On April 14, 2026, Tidewater Inc. (NYSE:TDW) closed at $84.28 per share. One-month return of Tidewater Inc. (NYSE:TDW) was 11.97%, and its shares gained 161.17% over the past 52 weeks. Tidewater Inc. (NYSE:TDW) has a market capitalization of $4.18 billion.

Black Bear Value Fund stated the following regarding Tidewater Inc. (NYSE:TDW) in its Q1 2026 investor letter:

"Tidewater Inc. (NYSE:TDW) increased by ~65% in the first quarter as investors rotated into energy and energy-adjacent stocks. Additionally in February, TDW acquired Wilson Sons, a leading Platform-Specialty-Vehicle (PSV) operator in Brazil.

Tidewater is a marine services firm that operates one of the world’s largest fleets of offshore support vessels (OSV’s). They serve the energy industry by transporting crew and supplies, towing and anchoring drillships and supporting offshore construction projects. The long-term outlook for international and offshore markets is strong while the near-term is a little cloudier. As current resource plays (the Permian) slow down, worldwide demand will continue to grow and require more oil. It is expected that offshore capital commitments will rebound in the next 1-2 years..." (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, 36 hedge fund portfolios held Tidewater Inc. (NYSE:TDW) at the end of the fourth quarter, compared to 40 in the previous quarter. While we acknowledge the potential of Tidewater Inc. (NYSE:TDW) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

In another article, we covered Tidewater Inc. (NYSE:TDW) and shared the list of best companies within the oil & gas equipment & services segment that are highly favored by hedge funds. In addition, please check out our hedge fund investor letters Q1 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.