Here’s LVS Advisory’s Investment Thesis for Talen Energy Corporation (TLN)

LVS Advisory, a New York City-based full-service investment firm, recently released its second-quarter 2024 investor letter.  A copy of the same can be downloaded here. The LVS Event-Driven portfolio was flat in the first half of 2024, while the LVS Growth Portfolio appreciated 18.2%, net of all fees and expenses. The Event-Driven Portfolio made some progress in Q2, following a challenging Q1. The Growth Portfolio is generating good performance without holding Nvidia or any semiconductor company. For more information on the fund’s top picks in 2024, please check its top five holdings.

LVS Advisory 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. One-month return of Talen Energy Corporation (NASDAQ:TLN) was -3.66%, and its shares gained 113.76% of their value over the last 52 weeks. On August 2, 2024, Talen Energy Corporation (NASDAQ:TLN) stock closed at $114.63 per share with a market capitalization of $5.828 billion.

LVS Advisory stated the following regarding Talen Energy Corporation (NASDAQ:TLN) in its Q2 2024 investor letter:

“This quarter I will discuss an investment we made in Talen Energy (NASDAQ:TLN). Talen is the only stock we own across both our Event-Driven and Growth Portfolios.

Talen Energy is an unregulated power generator whose primary asset is a 2.2 gigawatt nuclear power plant located outside of Berwick, PA. The Company also owns an additional 8.4 gigawatts of mostly natural gas powered plants in the Mid-Atlantic region.

The investment story for Talen begins with the Company’s 2022 bankruptcy. Talen was a debt-strapped private-equity backed company with a sprawling power generation portfolio. In addition to managing a complex capital structure, the company maintained a hedging strategy to protect itself from a sudden drop in energy prices. Ironically, Talen wasn’t protected from a sudden rise in energy prices…” (Click here to read the full text)

gas, energy

Photo by Frédéric Paulussen on Unsplash

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 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.