Night Watch Investment Partners LP on Marex Group plc
Thesis
Night Watch believes Marex will be a significantly better company in a few years and that the market is not pricing in that improvement. A secondary attraction is its counter-cyclical profile, because Marex makes more money when financial markets become more volatile. The fund sees this as particularly valuable in an unpredictable geopolitical and macro environment where another period of market disruption could materially benefit the business. Despite the shares rising roughly 250% from the fund's initial purchases around the IPO, Marex continues to reinvest capital at more than 30% ROE while trading at only about 10x next year's earnings. Night Watch therefore continues to view Marex as one of the most underappreciated growth stories in the market.
“It remains one of the most underappreciated growth stories that we are seeing in the stock market today.”