Capital Power (CPX TSX)
Capital Power is a renewable energy company with a diverse portfolio of power-generating assets spanning across Canada and the United States. The company aligns well with several compelling macro investment themes, including the multi-trillion-dollar global clean energy transition. Management has built a strong balance sheet and has prioritized shareholders in its recent capital allocation and expenditure decisions. By pursuing a growth strategy funded internally, we expect Capital Power to deliver outsized earnings growth in the coming years. We also believe the company will benefit from the substantial clean energy demand associated with Artificial Intelligence. While we previously held shares in the company, shares were sold when the Bank of Canada raised interest rates. In the latest quarter, we repurchased the position as lower interest rates will start to benefit capital-intensive renewable energy businesses.