Meridian Hedged Equity Fund Maintains Confidence in Vistra Corp. (VST)

Core Insights - U.S. equity markets in Q4 2025 were influenced by optimism regarding potential monetary easing and caution about economic growth and valuations [1] - The Meridian Hedged Equity Fund gained 0.08% in Q4 2025, underperforming the S&P 500 Index's 2.66% return and the CBOE S&P 500 BuyWrite Index's 6.53% return [1] - The firm is monitoring factors such as monetary policy and the sustainability of AI investments as it approaches 2026 [1] Company Analysis: Vistra Corp. (NYSE:VST) - Vistra Corp. is identified as a major performance detractor for the Meridian Hedged Equity Fund in Q4 2025 [2] - As of February 13, 2026, Vistra Corp. stock closed at $171.49 per share, with a one-month return of 5.65% and a twelve-month increase of 4.98% [2] - Vistra Corp. has a market capitalization of $58.105 billion [2] Performance and Positioning - Vistra Corp. is described as a U.S. power producer with a balanced portfolio of nuclear, natural gas, and renewable assets, along with a strong retail electricity business [3] - The company is positioned to benefit from increasing electricity demand driven by data centers and electrification trends [3] - Despite underperformance due to longer-term guidance falling short of expectations, the company has shown consistent execution, a strong balance sheet, and an increased share repurchase authorization [3]