Here’s What Boosted Talen Energy Corporation (TLN) in Q3

Polen Capital, an investment management company, released its “Polen U.S. SMID Cap Growth Strategy” third-quarter 2025 investor letter.  A copy of the letter can be downloaded here. The strategy returned 14.8% gross and 14.4% net of fees in the quarter, compared to the Russell 2500 Growth Index return of 10.7%. In addition, you can check the fund’s top 5 holdings to find out its best picks for 2025.

In its third-quarter 2025 investor letter, Polen U.S. SMID Cap Growth Strategy highlighted stocks such as Talen Energy Corporation (NASDAQ:TLN). Talen Energy Corporation (NASDAQ:TLN) is an independent power producer and infrastructure company. The one-month return of Talen Energy Corporation (NASDAQ:TLN) was -10.11%, and its shares gained 74.82% of their value over the last 52 weeks. On November 21, 2025, Talen Energy Corporation (NASDAQ:TLN) stock closed at $365.96 per share, with a market capitalization of $16.72 billion.

Polen U.S. SMID Cap Growth Strategy stated the following regarding Talen Energy Corporation (NASDAQ:TLN) in its third quarter 2025 investor letter:

“The top contributors to the Portfolio’s relative performance in the quarter were Bloom Energy, SoFi Technologies, and Talen Energy Corporation (NASDAQ:TLN).

Talen Energy is one of the largest power generation companies in North America with 10.7GW of total power generation, including 2.2GW at its Susquehanna, PA nuclear power plant. As the tech industry continues its aggressive buildout of data centers for running AI workloads, it is driving the biggest increase in electricity demand in decades. This in turn has spurred a race among energy companies to develop and acquire operational gas-fired plants, which are capable of providing round-the-clock power, unlike intermittent solar and wind. Along these lines, the stock reacted positively to the news in July that Talen Energy agreed to a $3.8B deal— the fourth big deal of the year—for two relatively new, favorably located gas fired power plants in Pennsylvania and Ohio.”

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Talen Energy Corporation (NASDAQ:TLN) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 83 hedge fund portfolios held Talen Energy Corporation (NASDAQ:TLN) at the end of the second quarter, which was 80 in the previous quarter.  While we acknowledge the risk and potential of Talen Energy Corporation (NASDAQ:TLN) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than Talen Energy Corporation (NASDAQ:TLN) and that has 10,000% upside potential, check out our report about this cheapest AI stock.

In another article, we covered Talen Energy Corporation (NASDAQ:TLN) and shared Alger Mid Cap Growth Fund’s views on the company. In addition, please check out our hedge fund investor letters Q3 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.