Third Point Management, a New York-based investment advisor, released its first-quarter 2024 investor letter. A copy of the same can be downloaded here. The Third Point Offshore Fund returned 7.8% net in the first quarter compared to a 10.6% return for the S&P 500 INDEX (TR) and a 9.0% return for the MSCI WORLD INDEX (TR). The fund posted solid returns in the first quarter, driven by robust performance from large-cap tech companies and continued gain from Bath & Body Works and Vistra. In addition, please check the fund’s top five holdings to know its best picks in 2024.
Third Point Management featured stocks like Vistra Corp. (NYSE:VST) in the first quarter 2024 investor letter. Headquartered in Irving, Texas, Vistra Corp. (NYSE:VST) is an integrated retail electricity and power generation company. On May 10, 2024, Vistra Corp. (NYSE:VST) stock closed at $93.42 per share. One-month return of Vistra Corp. (NYSE:VST) was 33.95%, and its shares gained 281.00% of their value over the last 52 weeks. Vistra Corp. (NYSE:VST) has a market capitalization of $32.589 billion.
Third Point Management stated the following regarding Vistra Corp. (NYSE:VST) in its first quarter 2024 investor letter:
“Vistra Corp. (NYSE:VST) is one of the largest independent power producers (“IPPs”) and retail electricity providers in the country. In 2023, Vistra’s natural gas, nuclear and coal plants generated over 20% of electricity consumed in Texas.
Unlike regulated utilities, where profits are determined by capital invested, Vistra operates in deregulated markets (primarily ERCOT and PJM), where they generate and sell electricity at market prices. Historically, Vistra has been valued at a steep discount to both the regulated utility sector and the broader market in part due to the challenging fundamentals of merchant power. Stagnant domestic electricity demand combined with an oversupply of natural gas has made US electricity prices among the lowest in the world. Meanwhile, significant growth in subsidized renewable generation has created major intraday price volatility in Vistra’s core markets, with power prices sometimes going negative during periods of abundant sunshine or wind. Bankruptcies, including Vistra’s former parent company TXU in 2014, have become commonplace in the sector over the last decade…” (Click here to read the full text)
Solar panel workers installing a new farm for clean energy generation.
Vistra Corp. (NYSE:VST) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 56 hedge fund portfolios held Vistra Corp. (NYSE:VST) at the end of the fourth quarter which was 52 in the previous quarter.
We discussed Vistra Corp. (NYSE:VST) in another article and shared the list of safe stocks to invest in. Sound Shore Management added Vistra Corp. (NYSE:VST) to its portfolio in the previous quarter as it is well positioned in the industry with diverse fuel sources. In addition, please check out our hedge fund investor letters Q1 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.
