In his February 18, 2026 letter to investors obtained by Hedge Fund Alpha, David Rosen of Rubric Capital not only blasted the private credit industry but also shared an update on the firm’s portfolio.
Read more hedge fund letters here
Talen Energy
Independent power producer Talen Energy (NASDAQ: TLN) has had a volatile few months alongside the rest of the industry. The last few months have also been very eventful for the company.
Talen announced it was acquiring three high-quality assets in Ohio and Indiana on January 16, paying $3.5 billion for them alongside a more than 15% immediate free cash flow per share accretion. Rosen noted that the acquisition boosts the company’s scale while fitting in nicely with its “flywheel strategy of accretively deploying free cash flow into assets that are well positioned to be contracted with high quality counterparties.”
Also see: Rubric Capital Warns Of $2 Trillion Private Credit Bubble
In fact, this is Talen’s second attractive deal over the last year, with the first one being its $3.5 billion purchase of a pair of combined-cycle gas turbines in Pennsylvania and Ohio at more than 50% free cash flow per share accretion. Rosen hopes that acquisition puts to rest the “misguided notion” some of the market holds that Talen is a better seller than buyer because of its cost of debt.
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