Night Watch Investment Management, an investment management firm, released its first-quarter 2026 investor letter. A copy of the letter is available to download here. In Q1 2026, Night Watch Investment Management LP appreciated by 2.69% net of fees in a volatile environment. The market experiences volatility influenced by narratives, with initial AI disruptions affecting companies, though the portfolio benefited due to limited exposure. Subsequently, the war in Iran led to increased oil prices and corrections in physical businesses. The portfolio strategy emphasizes discovering individual businesses poised for earnings growth and understanding key market drivers to adapt swiftly to changing conditions. In addition, please check the Strategy’s top five holdings to know its best picks in 2026.
In its first-quarter 2026 investor letter, Night Watch Investment Management highlighted Marex Group plc (NASDAQ:MRX). Marex Group plc (NASDAQ:MRX) is a financial services platform company that focuses on commodities, energy and financial markets. On June 9, 2026, Marex Group plc (NASDAQ:MRX) closed at $60.49 per share. One-month return of Marex Group plc (NASDAQ:MRX) was 3.85%, and its shares gained 51.87% over the past 52 weeks. Marex Group plc (NASDAQ:MRX) has a market capitalization of $4.35 billion.
Night Watch Investment Management stated the following regarding Marex Group plc (NASDAQ:MRX) in its Q1 2026 investor letter:
"Our largest position remains Marex Group plc (NASDAQ:MRX), which is a company that benefits enormously from the current market volatility. Marex clears futures on behalf of their clients and when trading activity in oil, precious metals, or any other kind of financial products picks up, Marex makes more money. Part of our strategy is to always own various counter-cyclical businesses. Businesses that do well if war breaks out, or some future event causes volatility to pick up.
Contrary to voice brokerage, their futures clearing business is more akin to financial infrastructure, with a defensible moat and strong market share gains. The company has grown their earnings 7-fold over the last 5 years. Despite their very strong growth drivers, the company still trades at 8-9x P/E, versus 13-14x for their closest peer StoneX. We think they will be able to continue to grow earnings at 30%+ per year, with some rerating potential on top, giving us multi-bagger upside on this name.
At 14.5%, this position is slightly larger than what you’d usually see from us, but the upside here is too compelling and management’s execution has been excellent. As they say, you’ve got to risk it if you want the biscuit."
Source: Yahoo Finance