Fred Alger Management, an investment management company, released its “Alger Mid Cap Focus Fund” fourth quarter 2024 investor letter. A copy of the letter can be downloaded here. U.S. equities experienced positive outcome largely driven by decisive U.S. presidential election outcome. Class A shares of the fund outperformed the Russell Midcap Growth Index in the quarter. The Information Technology and Industrials sectors contributed to relative performance while Financials and Utilities detracted. In addition, please check the fund’s top five holdings to know its best picks in 2024.
Alger Mid Cap Focus Fund highlighted stocks like Constellation Energy Corporation (NASDAQ:CEG) in the Q4 2024 investor letter. Constellation Energy Corporation (NASDAQ:CEG) engages in the generation of electricity in the United States. The one-month return of Constellation Energy Corporation (NASDAQ:CEG) was 40.00%, and its shares gained 182.95% of their value over the last 52 weeks. On January 16, 2025, Constellation Energy Corporation (NASDAQ:CEG) stock closed at $315.24 per share with a market capitalization of $98.62 billion.
Alger Mid Cap Focus Fund stated the following regarding Constellation Energy Corporation (NASDAQ:CEG) in its Q4 2024 investor letter:
“Constellation Energy Corporation (NASDAQ:CEG) is the largest producer of clean energy in the U.S., with 32,400 Megawatts of capacity, approximately 67% of which is nuclear generated. Its nuclear, hydro, wind, and solar facilities provide 10% of all clean energy on the U.S. grid and 22% of its clean baseload power. We believe the company stands to benefit from the increasing electrification of the U.S. economy. The rise of electric vehicles, data centers, and reshoring of American manufacturing is driving U.S. electricity load growth for the first time in nearly two decades. During the quarter, shares detracted from performance due to a combination of regulatory challenges and broader industry pressures. The Federal Energy Regulatory Commission (FERC) rejected an interconnection agreement between Talen Energy’s Susquehanna nuclear plant and an Amazon data center, raising concerns about similar deals and regulatory hurdles for the nuclear industry. While this event was outside Constellation’s control, we believe it does not alter the thesis that tight power markets should drive higher pricing for the company. In our view, the FERC rejection also underscores anticipated tightness in mid-Atlantic power markets, reinforcing the long-term value of Constellation’s under-monetized assets.”
A close up of a wind turbine producing electricity as the sun sets.
Constellation Energy Corporation (NASDAQ:CEG) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 78 hedge fund portfolios held Constellation Energy Corporation (NASDAQ:CEG) at the end of the third quarter which was 71 in the previous quarter. While we acknowledge the potential of Constellation Energy Corporation (NASDAQ:CEG) 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 Constellation Energy Corporation (NASDAQ:CEG) and shared the list of top AI stocks on latest analyst ratings and news. Constellation Energy Corporation (NASDAQ:CEG) contributed to the performance of Alger Mid Cap Focus Fund in the previous quarter. In addition, please check out our hedge fund investor letters Q4 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.