Vistra (VST) -- Strategic Exit Amidst Volatile Market Dynamics | Legacy Ridge 2024 Q4

Capitalizing on Power Demand Growth and AI Trends

Apr 13, 2025

Summary

Exited position following significant appreciation in stock value.
Benefited from increased power demand and AI-driven market excitement.
Faced challenges from emerging AI technologies reducing energy consumption.
Stock appreciated by 262% in 2024 before a sharp decline.
Future outlook uncertain due to fluctuating power demand estimates.

In Legacy Ridge Capital Management’s Q4 2024 letter, Vistra (VST, Financial) was highlighted as a significant position that was completely exited after a period of substantial appreciation. The fund capitalized on the stock's rise, driven by increased power demand and excitement around AI, before a sudden market correction.

"Selling is hard! The punchline is that we completely exited our Vistra (VST, Financial) position 2-weeks ago, selling our final block of shares around $170, but we’re hardly clairvoyant. In fact, almost immediately our sale looked premature as the stock subsequently jumped to $199, and then a few days later the stock went down 28% to $137 on a report Chinese AI startup DeepSeek uses significantly less capital and energy in their AI model than incumbent US versions." — Kristopher P. Kelley, Legacy Ridge Capital Management, Q4 2024 Fund Letter

Read full letter at gurufocus Legacy Ridge 2024 Q4 page.

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