Talen Energy Corporation (TLN) Management Reiterated Its Full-Year Guidance

Fred Alger Management, an investment management company, released its “Alger Mid Cap Growth Fund” third-quarter 2025 investor letter. A copy of the letter can be downloaded here. The letter highlighted the market outlook and top-performing and underperforming stocks. Equity markets continued their upward rally in the third quarter, with the S&P 500 Index up 8.12%. A confluence of improved economic conditions, strong corporate earnings, and anticipation of monetary easing drove the strong performance of the market in the quarter. The Class A shares of the fund outperformed the Russell Midcap Growth Index in the quarter. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its third-quarter 2025 investor letter, Alger Mid Cap Growth Fund highlighted stocks such as Talen Energy Corporation (NASDAQ:TLN). Talen Energy Corporation (NASDAQ:TLN) is an independent power producer and infrastructure company. The one-month return of Talen Energy Corporation (NASDAQ:TLN) was -12.65%, and its shares gained 77.14% of their value over the last 52 weeks. On November 13, 2025, Talen Energy Corporation (NASDAQ:TLN) stock closed at $355.04 per share, with a market capitalization of $16.221 billion.

Alger Mid Cap Growth Fund stated the following regarding Talen Energy Corporation (NASDAQ:TLN) in its third quarter 2025 investor letter:

"Talen Energy Corporation (NASDAQ:TLN) is an independent power producer operating in the PJM market across the Mid-Atlantic and Midwest, where constrained supply and rising demand from data centers running AI workloads—particularly in northern Virginia—are supporting higher power prices and capacity. Talen also leverages its Cumulus digital infrastructure platform, which includes a hyperscale data center campus adjacent to its Susquehanna nuclear facility, providing carbon-free, low-cost energy directly from the plant and creating incremental revenue opportunities. While fiscal second-quarter operating results were modestly below estimates due to extended outages at Susquehanna, management reaffirmed full-year guidance, reinforcing visibility around future demand and grid revenues. The company also hosted an investor day in September, where management introduced its 2027 and 2028 outlook, which served as a positive catalyst for the stock."

Talen Energy Corporation (NASDAQ:TLN) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 83 hedge fund portfolios held Talen Energy Corporation (NASDAQ:TLN) at the end of the second quarter, which was 80 in the previous quarter. While we acknowledge the potential of Talen Energy Corporation (NASDAQ:TLN) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

In another article, we covered Talen Energy Corporation (NASDAQ:TLN) and shared the list of best up and coming stocks to buy. In addition, please check out our hedge fund investor letters Q3 2025 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.