Edison International (EIX) Struggled After California Wildfires

Impax Asset Management, an investment management company, released its “Impax US Sustainable Economy Fund” first quarter 2025 investor letter. A copy of the letter can be downloaded here. US large-cap equity fell in the quarter following the uncertainty surrounding US tariffs. In the first quarter of 2025, the fund underperformed the Russell 1000 benchmark. Negative stock selection and lack of energy exposure led to the underperformance of the fund in the quarter. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2025.

In its first-quarter 2025 investor letter, Impax US Sustainable Economy Fund highlighted stocks such as Edison International (NYSE:EIX). Edison International (NYSE:EIX) engages in the generation and distribution of electric power. The one-month return of Edison International (NYSE:EIX) was -3.15%, and its shares lost 27.03% of their value over the last 52 weeks. On June 4, 2025, Edison International (NYSE:EIX) stock closed at $54.36 per share with a market capitalization of $20.916 billion.

Impax US Sustainable Economy Fund stated the following regarding Edison International (NYSE:EIX) in its Q1 2025 investor letter:

“Edison International (NYSE:EIX) (Utilities) is an electric utility that generates a substantial portion of its power via renewable sources and has a strong systematic ESG risk profile. The stock has struggled in the aftermath of the California wildfires, as one of the powerlines tied to the Eaton fire comes under Edison’s jurisdiction. While liabilities are capped and the long-term story is intact, volatility is likely to continue.”

Is Edison International (EIX) the Best Dividend Growth Stock with High Yields?

A wide aerial view of an electric power transmission facility with lines, substations, and overhead wires.

Edison International (NYSE:EIX) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 44 hedge fund portfolios held Edison International (NYSE:EIX) at the end of the first quarter, which was 38 in the previous quarter. While we acknowledge the potential of Edison International (NYSE:EIX) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the undervalued AI stock set for massive gains.

In another article, we covered Edison International (NYSE:EIX) and shared ClearBridge Large Cap Value Strategy’s views on the company. In addition, please check out our hedge fund investor letters Q1 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.