Meridian Funds, managed by ArrowMark Partners, released its “Meridian Hedged Equity Fund” third quarter 2023 investor letter. A copy of the same can be downloaded here. In the quarter, the fund declined -1.36% (net), outperforming its benchmark, the S&P 500 Index, which declined -3.27%. The firm focuses on high-quality companies for long-term growth. In addition, you can check the top 5 holdings of the fund to know its best picks in 2023.
Meridian Hedged Equity Fund 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 22, 2023, Vistra Corp. (NYSE:VST) stock closed at $38.02 per share. One-month return of Vistra Corp. (NYSE:VST) was 9.06%, and its shares gained 59.28% of their value over the last 52 weeks. Vistra Corp. (NYSE:VST) has a market capitalization of $13.594 billion.
Meridian Hedged Equity Fund made the following comment about Vistra Corp. (NYSE:VST) in its Q3 2023 investor letter:
“Vistra Corp. (NYSE:VST) is an integrated power company operating in 12 U.S. states. Its retail brands serve roughly three million customers, and it owns natural gas, nuclear, coal, and solar power generation facilities. We own Vistra due to its effective generation-retail matching strategy that provides strong nearand long-term free cash flow. The company has taken steps to de-risk its operations offering visibility in EBITDA and free cash flow generation extending through 2025, providing the potential relative predictability we prefer. Its sound capital allocation plan includes approximately $1 billion in annual stock buybacks and $300 million in annual dividends, offering an element of downside protection to our investment. The stock performed well during the quarter when it reported higher-than-expected EBITDA, attributed primarily to retail energy margins and a well-hedged generation fleet.”
An energy efficient wind turbine on a sprawling field, generating renewable energy.
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 Sound Shore Management’s views on the company. 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.