ClearBridge Investments, an investment management company, released its “ClearBridge Value Strategy” fourth quarter 2024 investor letter. A copy of the letter can be downloaded here. In the fourth quarter, the strategy outperformed its Russell 1000 Value benchmark. The strong contributions from financials and energy holdings overcame detractors in consumer staples. In addition, please check the fund’s top five holdings to know its best picks in 2024.
ClearBridge Value Strategy highlighted stocks like Talen Energy Corporation (NASDAQ:TLN), in the fourth quarter 2024 investor letter. Talen Energy Corporation (NASDAQ:TLN) is an independent power producer and infrastructure company. The one-month return of Talen Energy Corporation (NASDAQ:TLN) was 2.95%, and its shares gained 232.19% of their value over the last 52 weeks. On January 8, 2025, Talen Energy Corporation (NASDAQ:TLN) stock closed at $215.59 per share with a market capitalization of $9.909 billion.
ClearBridge Value Strategy stated the following regarding Talen Energy Corporation (NASDAQ:TLN) in its Q4 2024 investor letter:
“We added several new positions during the quarter and updated our utilities and energy exposure. In utilities, we bought Talen Energy Corporation (NASDAQ:TLN), an independent power producer which sells electricity, capacity, and ancillary services into wholesale power markets, which we funded by exiting our position in Constellation Energy. Although both companies are merchant power producers that stand to benefit from higher power prices as AI data centers are brought online, we believe that Talen’s stock price has milder embedded expectations than does the more optimistic Constellation. As a result, we believe that Talen represents a much more attractive risk/reward tradeoff that still capitalizes on the strong, long-term trend toward higher power prices.”
Talen Energy Corporation (NASDAQ:TLN) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 68 hedge fund portfolios held Talen Energy Corporation (NASDAQ:TLN) at the end of the third quarter which was 0 in the previous quarter. In the third quarter, Talen Energy Corporation (NASDAQ:TLN) generated adjusted EBITDA of $230 million and adjusted free cash flow of $97 million. While we acknowledge the potential of Talen Energy Corporation (NASDAQ:TLN) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
In another article, we discussed Talen Energy Corporation (NASDAQ:TLN) and shared the list of Jim Cramer stocks to watch in 2025. In addition, please check out our hedge fund investor letters Q4 2024 page for more investor letters from hedge funds and other leading investors.
READ NEXT: Michael Burry Is Selling These Stocks and A New Dawn Is Coming to US Stocks.
Disclosure: None. This article is originally published at Insider Monkey.