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 Endava plc (NYSE:DAVA). Endava plc (NYSE:DAVA) is a technology services provider for clients in the consumer products, healthcare, mobility, and retail verticals. On January 6, 2026, Endava plc (NYSE:DAVA) stock closed at $6.67 per share. One-month return of Endava plc (NYSE:DAVA) was -0.30%, and its shares lost 78.65% of their value over the last 52 weeks. Endava plc (NYSE:DAVA) has a market capitalization of $362.365 million.
Night Watch Investment Management stated the following regarding Endava plc (NYSE:DAVA) in its fourth quarter 2025 investor letter:
“Endava plc (NYSE: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.
Endava plc (NYSE:DAVA) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 14 hedge fund portfolios held Endava plc (NYSE:DAVA) at the end of the third quarter, up from 11 in the previous quarter. While we acknowledge the potential of Endava plc (NYSE:DAVA) 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.
