Night Watch Investment Management, an investment management firm, released its fourth-quarter 2025 investor letter. A copy of the letter can be downloaded here. Despite experiencing high volatility in individual stocks during Q4, the fund finished the quarter approximately flat. Overall, the firm is pleased with how 2025 unfolded. Like 2024, the results were broad-based and did not rely on any single security. In addition, please check the fund’s top five holdings to know its best picks in 2025.
In its fourth-quarter 2025 investor letter, Night Watch Investment Management highlighted stocks such as Western Digital Corporation (NASDAQ:WDC). Western Digital Corporation (NASDAQ:WDC) offers data storage devices and solutions based on hard disk drive (HDD) technology. On January 6, 2026, Western Digital Corporation (NASDAQ:WDC) stock closed at $219.38 per share. One-month return of Western Digital Corporation (NASDAQ:WDC) was 20.57%, and its shares gained 353.21% of their value over the last 52 weeks. Western Digital Corporation (NASDAQ:WDC) has a market capitalization of $75.202 billion.
Night Watch Investment Management stated the following regarding Western Digital Corporation (NASDAQ:WDC) in its fourth quarter 2025 investor letter:
“Western Digital Corporation (NASDAQ:WDC), a manufacturer of hard-disk drives, benefited from a large memory shortage driven by investments in AI data centers. The shares are up >200% since our purchase and we have been scaling down our position, given that memory cycles have historically been very short and very violent.”
Western Digital Corporation (NASDAQ:WDC) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 84 hedge fund portfolios held Western Digital Corporation (NASDAQ:WDC) at the end of the third quarter, up from 74 in the previous quarter. While we acknowledge the potential of Western Digital Corporation (NASDAQ:WDC) 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 Western Digital Corporation (NASDAQ:WDC) and shared stocks with double-digit Gains. Night Watch Investment Management initiated a position in Western Digital Corporation (NASDAQ:WDC) in the previous quarter. In addition, please check out our hedge fund investor letters Q4 2025 page for more investor letters from hedge funds and other leading investors.
