TransAlta: A Spot of Prudence, What!

by

Now, one gathers that Potrero Capital Research, a fund of considerable discernment (and, one assumes, a tidy sum tucked away), has seen fit to lighten its holdings in TransAlta. A mere 794,400 shares, you understand, dispatched into the market during the last quarter. A transaction amounting to something in the neighbourhood of $11.86 million, if one’s calculations are correct – and, naturally, they always are. It’s not a wholesale abandonment, mind you, merely a judicious trimming, a bit of financial housekeeping, if you will.

A Modest Adjustment

The fund, it appears, still retains a respectable 1,724,544 shares, representing a value of around $21.80 million at the quarter’s end. The net effect, after accounting for market fluctuations and the general vagaries of finance, is a decrease of $12.64 million in their TransAlta portfolio. Not a disaster, by any means, but enough to raise a quizzical eyebrow, what?

The Lay of the Land

This trimming has reduced TransAlta’s prominence within Potrero’s holdings, shrinking it to 7.34% of their reportable equity AUM. A bit like a dashing fellow losing a crucial button on his waistcoat – noticeable, certainly, but not ruinous. Their top holdings, as of late, include TLN ($29.05 million), TransAlta itself ($21.80 million), BlackLine ($20.49 million), Microsoft ($18.71 million), and STX ($16.96 million). A rather sensible assortment, one might say.

And the stock, bless its heart, has been performing rather handsomely. Up nearly 29% over the past year, it’s given the S&P 500 a jolly good run for its money, outpacing it by a full 17.72 percentage points. A truly spirited performance, wouldn’t you agree?

A Glimpse Behind the Scenes

Metric Value
Market capitalization $3.98 billion
Revenue (TTM) $1.82 billion
Net income (TTM) ($103.25 million)
Price (as of February 17, 2026) $13.43

TransAlta, for those unfamiliar with its charms, is a producer and purveyor of electricity, drawing power from hydro, wind, solar, gas, and all manner of energy transition assets. They dabble in energy trading and related mining operations, too – a remarkably diversified portfolio, wouldn’t you say? They serve municipalities, industrial concerns, utilities, and large commercial customers across Canada, the United States, and Australia. A truly international operation, what!

The Meaning of it All

Now, one might be tempted to view this share trimming as a sign of impending doom, a bearish signal from a discerning fund. But, dash it all, that would be a bit dramatic, wouldn’t it? The fact remains that TransAlta shares have been on a bit of a roll, and sometimes a fund simply takes a bit of profit, like a chap cashing in a winning bet.

The stake still represents a healthy 7.34% of their assets, placing it firmly among their top holdings. This isn’t an abandonment of the thesis, you see, but rather a recalibration after a period of rather splendid outperformance. A bit like adjusting one’s tie after a particularly vigorous game of cricket.

For the long-term investor, the real question is execution. Management is forging ahead with a 230 MW data center transmission contract and making strides in energy transition initiatives. If these projects take flight and power markets stabilise, TransAlta’s diversified portfolio could well justify a bit of patience. It’s a bit of a gamble, naturally, but a calculated one, what!

Read More

2026-02-21 03:34