Here's What Fueled Vistra Corp.'s (VST) Strong Performance

ClearBridge Investments, an investment management company, released its “ClearBridge Value Strategy” second quarter 2025 investor letter. A copy of the letter can be downloaded here. The investment landscape appears thriving on the surface but chaotic underneath due to geopolitical tensions, deglobalization, rising debt, and supply chain disruptions. Although nominal growth is accelerating, it also brings greater volatility and unpredictability. The ClearBridge Value Strategy outperformed its Russell 1000 Value Index benchmark in the second quarter in a subdued period for value stocks. Overall stock selection contributed to the strategy’s performance in the quarter, while overall sector allocation detracted. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its second quarter 2025 investor letter, ClearBridge Value Strategy highlighted stocks such as Vistra Corp. (NYSE:VST). Vistra Corp. (NYSE:VST) is an integrated retail electricity and power generation company. The one-month return of Vistra Corp. (NYSE:VST) was 18.12%, and its shares gained 113.42% of their value over the last 52 weeks. On July 9, 2025, Vistra Corp. (NYSE:VST) stock closed at $197.01 per share, with a market capitalization of $66.852 billion.

ClearBridge Dividend Strategy stated the following regarding Vistra Corp. (NYSE:VST) in its second quarter 2025 investor letter:

"The ClearBridge Value Strategy outperformed in its Russell 1000 Value Index benchmark in a subdued period for value stocks. The resurgence of investor interest in the AI theme fueled strong performance of merchant power producers Vistra Corp. (NYSE:VST) and Talen Energy, driving relative outperformance in the utilities sector. Both companies stand to benefit from the strong, long-term trend toward higher power prices as AI development continues to require new data centers brought online and greater power supply."

Vistra Corp. (NYSE:VST) is in 28th position on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 102 hedge fund portfolios held Vistra Corp. (NYSE:VST) at the end of the first quarter, compared to 120 in the previous quarter. While we acknowledge the potential of 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 the list of stocks Jim Cramer recently discussed. In addition, please check out our hedge fund investor letters Q2 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.