Do You Believe in the Long-Term Outlook for The AES Corporation (AES)?
Massif Capital, an investment management company, released its “Massif Capital Real Assets Strategy” second-quarter 2023 investor letter. A copy of the same can be downloaded here. In the second quarter, the strategy returned -1.68% net of fees. The fund’s short position was 0.35% and its long position was 1.16% down in the quarter. In addition, you can check the top 5 holdings of the strategy to know its best picks in 2023.
Massif Capital highlighted stocks like The AES Corporation (NYSE:AES) in the second quarter 2023 investor letter. Headquartered in Arlington, Virginia, The AES Corporation (NYSE:AES) is a diversified power generation and utility company. On July 18, 2023, The AES Corporation (NYSE:AES) stock closed at $21.75 per share. One-month return of The AES Corporation (NYSE:AES) was 3.67%, and its shares gained 8.86% of their value over the last 52 weeks. The AES Corporation (NYSE:AES) has a market capitalization of $14.558 billion.
Massif Capital made the following comment about The AES Corporation (NYSE:AES) in its second quarter 2023 investor letter:
"Currently, the portfolio has roughly 11% allocated across two utilities, The AES Corporation (NYSE:AES) and Polaris Renewable Energy. In the case of both equities, we have experienced disappointing 2023 market results, and in the case of AES, it is the long-book’s worst performer YTD, dragging down the overall portfolio by -2.09%. Polaris contributed a positive return of 0.21%. These two positions represent investments in similar assets but very different businesses, which explains much of the divergence in this year’s results.
In the case of AES, we have a heavily US-focused utility with significant exposure to regulated and unregulated markets and a significant commitment to building out renewable energy. The firm also has some exposure to electricity markets in South America and exposure to electricity storage markets in the form of its ownership stake in Fluence (FLNC). Despite being one of the larger US utilities, the firm has trailed the sector (as measured by the IXUTR Index) dramatically this year…” (Click here to read the full text)
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The AES Corporation (NYSE:AES) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 44 hedge fund portfolios held The AES Corporation (NYSE:AES) at the end of first quarter which was 44 in the previous quarter.
We discussed The AES Corporation (NYSE:AES) in another article and shared the list of best dividend stocks under $25. In addition, please check out our hedge fund investor letters Q2 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.
