Viking Global Investors, the hedge fund firm led by Andreas Halvorsen, has chalked up big gains from a decision earlier in the year to shift all of its General Electric Co exposure to the firm's newly independent clean energy division GE Vernova, according to a report by Bloomberg. Since Vernova began trading on 27 March, its stock has surged over 40%, making it Viking's top performer in the second quarter. This success has boosted both Viking's hedge and long-only funds, which have gained 8.1% and 13% respectively through July, according to a letter to investors seen by Bloomberg. Viking's letter expressed optimism about Vernova's power and electrification divisions, noting they are well-positioned to benefit from increasing electricity demand, partly driven by the expansion of data centres to support artificial intelligence. However, the firm remains cautious about Vernova's wind energy business, citing uncertainty around the upcoming US elections in November. Despite this caution, Viking continues to hold Vernova shares, although it has reduced its position from its peak. Viking is not alone in betting on Vernova. Hedge funds including Coatue Management and D1 Capital Partners have also acquired significant stakes in the company during the second quarter. Viking manages around $49bn.
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