Alluvial Capital Management, an investment advisory firm, released its second-quarter 2024 investor letter. A copy of the letter can be downloaded here. The fund had a good second quarter rising 3.9% and its year-to-date return was 10.4%. However, comparable indexes sputtered. The Russell Micro-Cap Index dropped 5.3%, entering negative territory for 2024 while, The Russell 2000 Index dropped 3.3%, resulting in a 1.7% year-to-date return. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2024.
Alluvial Capital Management highlighted stocks like Talen Energy Corporation (NASDAQ:TLN), in the second 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 25.80%, and its shares gained 167.29% of their value over the last 52 weeks. On August 22, 2024, Talen Energy Corporation (NASDAQ:TLN) stock closed at $143.00 per share with a market capitalization of $7.293 billion.
Alluvial Capital Management stated the following regarding Talen Energy Corporation (NASDAQ:TLN) in its Q2 2024 investor letter:
“Talen Energy Corporation (NASDAQ:TLN) has had quite a year, selling off non-core power generation assets, buying back huge quantities of stock, and now listing on the NASDAQ. Talen is one of those too-rare cases where everything goes according to plan. The company is now enjoying a moment in the sun thanks to its ownership of a top-tier producer of reliable, low-carbon energy, the Susquehanna Steam Electric Station. So, what’s next? Talen will continue to sell off its legacy fossil fuel-burning power generation fleet and return excess capital to shareholders through buybacks. I still think the end game for Talen is a sale of the company once its less attractive assets are divested. Susquehanna, the nation’s sixth-largest nuclear facility with 2.5 gigawatts of power production capacity, is just too much of a prize to be held by a company of Talen’s size.”
Talen Energy Corporation (NASDAQ:TLN) is not on our list of 31 Most Popular Stocks Among Hedge Funds. 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 LVS Advisory’s views on the company. In addition, please check out our hedge fund investor letters Q2 2024 page for more investor letters from hedge funds and other leading investors.
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Disclosure: None. This article is originally published at Insider Monkey.
