Vistra Corp. (VST) Rose on Higher US Electricity Prices

Sound Shore Management, an investment management firm, has released its investor letter for the third quarter of 2023. A copy of the same can be downloaded here. In the third quarter, the Sound Shore Fund Investor Class (SSHFX) and Institutional Class (SSHVX) declined 2.01% and 1.94%, respectively outperforming the Russell 1000 Value Index (Russell Value) which declined 3.16%. The three-year annualized gains for SSHFX and SSHVX were 11.83% and 12.05%, respectively, ahead of the Russell Value’s 11.05%. In addition, please check the fund’s top five holdings to know its best picks in 2023.

Sound Shore Management highlighted stocks like Vistra Corp. (NYSE:VST) in the third quarter 2023 investor letter. Headquartered in Irving, Texas, Vistra Corp. (NYSE:VST) is an integrated retail electricity and power generation company. On December 20, 2023, Vistra Corp. (NYSE:VST) stock closed at $37.61 per share. One-month return of Vistra Corp. (NYSE:VST) was 8.04%, and its shares gained 59.70% of their value over the last 52 weeks. Vistra Corp. (NYSE:VST) has a market capitalization of $13.448 billion.

Sound Shore Management made the following comment about Vistra Corp. (NYSE:VST) in its Q3 2023 investor letter:

“On the plus side of the ledger, we had strong contributions from independent power producers Vistra Corp. (NYSE:VST) and Constellation Energy. Both stocks surged with higher US electricity prices as strong summer demand exposed reliability issues in many regions of the nation’s electric grid. Vistra, primarily a Texas electricity generator and marketer, is a name we’ve discussed in prior letters. The company is a low cost supplier with diversified fuel sources, and it will soon be closing its accretive acquisition of another merchant power generator, Energy Harbor. Even after its strong performance, the stock retains a 15% free cash flow yield.”

A vast hydroelectric generation plant with a powerful waterfall cascading downwards.

Vistra Corp. (NYSE:VST) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 52 hedge fund portfolios held Vistra Corp. (NYSE:VST) at the end of third quarter which was 48 in the previous quarter.

We discussed Vistra Corp. (NYSE:VST) in another article and shared the list of most profitable utility stocks to buy. In addition, please check out our hedge fund investor letters Q3 2023 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.