Ryan Caione ’25 pitched Vistra Corp. (NYSE: VST) on April 21, 2025. Vistra is the largest competitive power generator in the United States, with operations spanning electricity generation, retail electricity sales, and innovative energy solutions. Positioned at the intersection of rising demand and limited new capacity, Vistra offers exposure to critical secular trends shaping the future of power markets.
Ryan’s investment thesis is three pronged, stating that Vistra is poised to benefit from accelerating demand growth driven by AI data centers, electrification, and reshoring. Its dominant position in Texas, the fastest growing electricity market in the country, gives the company a unique advantage to meet surging load growth. Additionally, tightening supply conditions and slowing capacity additions are expected to enhance Vistra’s pricing power, supporting margin expansion. Finally, Vistra’s disciplined capital allocation strategy and robust free cash flow generation position the company to return meaningful value to shareholders through buybacks and dividends.
SMIF voted to purchase approximately $35,000 of VST. While this is smaller than the typical initial position size, the high beta nature of the stock warranted a more measured allocation. This position provides the portfolio with meaningful active risk exposure to Vistra while maintaining diversification across the utilities sector.
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