Reaves W H & Co Inc released its third-quarter 2026 investor letter for “Reaves Long-Term Value Strategy”. The letter can be downloaded here. The Reaves Long-Term Value Wrap Composite saw an 11.83% decline before fees in Q3, underperforming the MSCI USA Infrastructure Index’s -5.73%, though it gained 7.88% in the first nine months of 2026, outperforming the index. The weighted average cash distributions from portfolio companies rose by 6.5% compared to Q3 2025. The challenging macroeconomic landscape, characterized by rising Treasury yields and tight monetary policy, impacted performance, especially for interest-sensitive holdings. However, the overall growth outlook improved, with several companies raising guidance despite stagnant share prices. Investment in AI infrastructure expanded, enhancing opportunities across sectors, while increased electricity demand supports growth in infrastructure investments. The focus remains on long-term earnings potential, aiming to identify undervalued companies amidst these durable growth opportunities. Also, check the strategy’s top five holdings to see its best picks in 2026.
In its Q3 2026 investor letter, Reaves Long-Term Value Strategy highlighted Constellation Energy Corporation (NASDAQ:CEG). Constellation Energy Corporation (NASDAQ:CEG), a US-based energy company, positively contributed to performance this quarter. On October 14, 2026, Constellation Energy Corporation (NASDAQ:CEG) closed at $279.54, with a $99.04 billion market capitalization. Constellation Energy Corporation (NASDAQ:CEG) posted a ~20.87% YTD pullback, trading within a 52-week range of $228.63 to $411.69.
Reaves Long-Term Value Strategy stated the following regarding Constellation Energy Corporation (NASDAQ:CEG) in its Q3 2026 investor letter:
“Constellation Energy Corporation (NASDAQ:CEG): Constellation Energy shares benefited from its August earnings update, which included higher full-year 2026 EPS guidance, continued share repurchases and additional 20-year contracts for its existing nuclear capacity at premium pricing. These agreements demonstrated the company’s ability to secure attractive commercial terms despite political and regulatory uncertainty surrounding data center contracting. After the market and quarter closed on September 30, the company announced an additional long-term agreement with Amazon. We believe additional agreements with large customers can further improve earnings visibility and support long-term growth.”
Constellation Energy (CEG) Positioned for Growth as PJM Market Developments Support Demand
Constellation Energy Corporation (NASDAQ:CEG) is not on our list of the 40 Most Popular Stocks Among Hedge Funds. According to our database, 73 hedge fund portfolios held Constellation Energy Corporation (NASDAQ:CEG) at the end of the second quarter, down from 79 in the previous quarter. While we acknowledge the potential of Constellation Energy Corporation (NASDAQ:CEG) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
Source: finance.yahoo.com — article syndicated from the publisher’s feed; all rights remain with the original publisher.
