Here's What Hurt Vistra Corp. (VST) in Q4

Carillon Tower Advisers, an investment management company, released its fourth-quarter 2025 investor letter for the “Carillon Eagle Mid Cap Growth Fund”. A copy of the letter can be downloaded here. The fourth quarter of 2025 saw mixed results for midcap stocks. Among the style indexes, the Russell Midcap® Growth Index decreased by 3.70%, while the Russell Midcap® Value Index rose by 1.41%. In the growth index, materials achieved the highest absolute return at 17.51%. However, due to their smaller weight in the index, their contribution to overall returns was limited. The healthcare (up 1.13%) and real estate (up 0.24%) sectors were the only other positive contributing sectors. Midcap stocks generated positive returns in 2025 but trailed their 2024 annual returns. The Russell Midcap Growth Index rose by 8.66%, trailing the Russell Midcap Value Index’s 11.04% return. In the growth index, utilities recorded the highest absolute return among all sectors, up 29.40%. The firm anticipates a favorable year ahead for equity markets. The letter outlined potential opportunities in Cyclicals, Healthcare, Information Technology, Financials, and Consumer Spending sectors through 2026. Please review the Fund’s top five holdings to gain insights into their key selections for 2025.

In its fourth-quarter 2025 investor letter, Carillon Eagle Mid Cap Growth Fund highlighted stocks like Vistra Corp. (NYSE:VST). Vistra Corp. (NYSE:VST) is an integrated electricity and power generation company. On March 03, 2026, Vistra Corp. (NYSE:VST) stock closed at $161.70 per share. One-month return of Vistra Corp. (NYSE:VST) was 13.46%, and its shares gained 27.45% over the past 52 weeks. Vistra Corp. (NYSE:VST) has a market capitalization of $54.788 billion.

Carillon Eagle Mid Cap Growth Fund stated the following regarding Vistra Corp. (NYSE:VST) in its fourth quarter 2025 investor letter:

"Vistra Corp. (NYSE:VST) is an integrated electricity and power generation company. Investors have been slightly disappointed in the lack of announced power purchase agreements (PPAs) across its generation fleet, with only one material deal disclosed to date. Investor sentiment and share performance have not been helped by a lack of disclosure surrounding this agreement, as well as by Vistra’s recent choppy results and an overall slight moderation in the AI-related enthusiasm that had helped lift the company’s valuation."

Vistra Corp. (NYSE:VST) is not on our list of 40 Most Popular Stocks Among Hedge Funds. According to our database, 102 hedge fund portfolios held Vistra Corp. (NYSE:VST) at the end of the fourth quarter, compared to 112 in the previous quarter. While we acknowledge the potential of Vistra Corp. (NYSE:VST) 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 Vistra Corp. (NYSE:VST) and shared a list of best March dividend stocks to buy. In addition, please check out our hedge fund investor letters Q4 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.