5 Best IPO Stocks to Buy Heading into 2024

2. Constellation Energy Corporation (NASDAQ:CEG)

Number of Hedge Fund Holders: 45

Based Baltimore, Maryland, Constellation Energy Corporation (NASDAQ:CEG) is United States’ largest producer of clean, carbon-free energy and a leading supplier of energy products and services. Its portfolio includes more than 23,000 megawatts of clean generating capacity across nuclear, solar, wind, and hydro plants.

As of Q3 2023, Constellation Energy Corporation (NASDAQ:CEG) shares were held by 50 prominent hedge funds with the total value of shares held by hedge funds valued at $1.0 billion. William B. Gray’s Orbis Investment Management was the largest hedge fund shareholder on record with ownership of 6.2 million shares valued at $671 million.

In its Q3 2023 investor letter, Sound Shore Management, an investment management firm, made the following comments about Constellation Energy Corporation (NASDAQ:CEG):

“Midwest focused Constellation is the biggest producer of carbon-free electricity in the US with nuclear power plants representing the majority of its capacity. We added the name in January 2023 when the stock was trading at a below normal 15 times earnings. Our research identified an upside to earnings power from maturing hedges and regulatory changes, including the Inflation Reduction Act’s nuclear credit. A recent spinout from Exelon Corp, we viewed the strength of Constellation’s clean, reliable baseload power model as an appealing and high potential offering for residential and commercial customers. The company’s recent contract to supply Microsoft at premium power prices is evidence of the opportunity. Constellation is yet another example of an industry undergoing tremendous change that can offer attractive investment opportunities for investors with patience and a research process to uncover specific companies that are well positioned.”