Billionaire Investor Reshuffles Utility Bets, Buys Constellation Energy And Trims PG&E

Hedge fund billionaire Daniel Loeb reshuffled his stake in the Electric Utilities industry at Third Point LLC in the fourth quarter of FY25.

As of Dec. 31, 2025, Loeb opened a new position in Constellation Energy Corporation (NASDAQ:CEG), acquiring 475,000 shares in the quarter.

Meanwhile, the investor reduced his stake in Pacific Gas & Electric Co. (NYSE:PCG) to 34.3 million shares from about 50.1 million shares in the third quarter of 2025.

CEG: Nvidia Deal & Strong Earnings Beat

• On Monday, the company, along with several other energy giant companies, announced a partnership with Nvidia Corp (NASDAQ:NVDA) to build a new class of AI data centers designed to tap up to 100 gigawatts of underutilized capacity across the U.S. power grid.
• In March, the company disclosed its plans to sell a portfolio of generation assets in PJM to LS Power at $5 billion, before closing adjustments. This represents an acquisition price of around $1,142/kW.
• In February, the company reported fourth-quarter FY25 revenue of $6.07 billion, beating the consensus of $5.300 billion. Adjusted EPS fell to $2.30 from $2.44 in the year-ago quarter, but exceeded the consensus of $2.23.
• The company's Calpine LLC unit signed a major new power agreement with data-center operator CyrusOne in Texas.
• Calpine agreed to supply 380 megawatts of power, grid connectivity, and site infrastructure for a new CyrusOne data center to be built next to the Freestone Energy Center in Freestone County, with an exclusive option for a second 380-MW phase.

CEG: Technical Analysis & ETF Exposure

Constellation Energy is trading 7.6% below its 20-day SMA and 12.1% below its 100-day SMA, keeping the intermediate trend under pressure even as Monday's tape improves. Shares are up 27.14% over the past 12 months, and the stock is positioned closer to its 52-week highs than lows.

Constellation Energy has significantly outperformed its peers in the electric services sector with an impressive year-over-year gain of +27.14%.

Top ETF Exposure

• State Street Utilities Select Sector SPDR ETF (NYSE:XLU): 6.21% Weight
• The Utilities Select Sector SPDR Fund (NYSE:XLU): 8.09% Weight
• Vanguard Utilities ETF (NYSE:VPU): 7.51% Weight

PCG: Mixed Earnings Results

• In February, the company reported earnings of 36 cents per share, which met the analyst consensus estimate, while sales of $6.804 billion missed the analyst consensus of $7.049 billion.
• PG&E narrowed its 2026 adjusted core EPS guidance to $1.64-$1.66 from $1.62-$1.66 previously.
• The company reduced electric rates on March 1, 2026, marking the fifth cut since January 2024. Also, it expects typical residential electric rates to be lower overall in 2026 than in 2025.

PCG: Technical Analysis & ETF Exposure

PCG is trading 5.8% below its 20-day simple moving average (SMA), but remains 5.3% above its 100-day SMA, a setup that often reads as short-term weakness inside a still-intact longer-term uptrend. Shares are up 1.17% over the past 12 months, and the stock is positioned closer to its 52-week high than its 52-week low.

Pacific Gas & Electric Co. has underperformed the peer group average by 3.99 percentage points, with the sector peers collectively advancing by +5.16%. This underperformance signals potential operational or market challenges specific to Pacific Gas & Electric Co., distinguishing it from the broader positive trends observed within its sector peers.

Top ETF Exposure

• The Utilities Select Sector SPDR Fund (NYSE:XLU): 3.52% Weight
• VanEck Uranium & Nuclear ETF (NYSE:NLR): 5.33% Weight
• VanEck Preferred Securities ex Financials ETF (NYSE:PFXF): 1.96% Weight

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