This Income Fund Just Completely Exited Its $37 Million Stake in Algonquin Power. Why?
Key Points
Sold 5,749,636 shares; estimated transaction value of $37.28 million based on quarterly average price.
Quarter-end position value decreased by $35.36 million, reflecting both trading activity and price movement.
Change represented 2.61% of Callodine’s 13F reportable assets under management.
Post-trade, Callodine holds zero shares in Algonquin Power & Utilities.
The stake was previously 2.8% of the fund’s AUM in the prior quarter.
- 10 stocks we like better than Algonquin Power & Utilities ›
Callodine Capital Management fully exited its stake in Algonquin Power & Utilities (NYSE:AQN) in the first quarter, selling 5,749,636 shares for an estimated $37.28 million based on average quarterly pricing, according to a May 15, 2026, SEC filing.
What happened
According to a filing with the Securities and Exchange Commission on May 15, 2026, Callodine Capital Management sold all 5,749,636 shares it previously held in Algonquin Power & Utilities. The estimated value of the sale was $37.28 million, calculated using the average closing price for the first quarter of 2026. The ending position value dropped by $35.36 million, reflecting both the sale and share price movement for the period.
What else to know
- Callodine fully liquidated its Algonquin Power & Utilities position, which now represents 0% of its 13F assets under management.
- Top holdings after the filing:
- NYSE:SPB: $150,995,307 (10.7% of AUM)
- NASDAQ:VTRS: $109,684,204 (7.7% of AUM)
- NYSE:WWW: $73,524,293 (5.2% of AUM)
- NYSE:GSK: $69,510,536 (4.9% of AUM)
- NYSE:BTI: $63,000,899 (4.4% of AUM)
- As of May 18, 2026, shares were priced at $5.77; the stock returned 5.33% over the past year, underperforming the S&P 500 by 24.94 percentage points.
Company overview
| Metric | Value |
|---|---|
| Revenue (TTM) | $2.51 billion |
| Net income (TTM) | $159.70 million |
| Dividend yield | 4.56% |
| Price (as of market close 2026-05-18) | $5.77 |
Company snapshot
- Operates regulated electric, gas, water, and wastewater utilities plus limited hydroelectric assets after divesting renewable energy operations in 2025.
- Earns revenue through rate-regulated utility services with fixed returns approved by regulators, eliminating exposure to renewable energy market volatility.
- Serves approximately 1.3 million customer connections across the United States, Canada, Bermuda, and Chile through its regulated utility network.
Algonquin Power & Utilities is a pure-play regulated utility operating electric, gas, and water systems across the United States and Canada. After selling its renewable energy business in 2025, the company repositioned as a traditional utility focused on steady, predictable returns from rate-regulated operations.
What this transaction means for investors
Algonquin completed a major transformation in 2025, selling its renewable energy business and using proceeds to pay down debt. The company repositioned itself as a pure-play regulated utility, operating electric, gas, and water systems across the United States and Canada.
Investment firm Callodine specializes in high-yielding specialty income investments with growth potential. After shedding its renewable business, Algonquin became a slow-growth regulated utility with capped returns, likely no longer fitting the fund's mandate for equity-like upside alongside dividends.
Regulated utilities offer stability but limited upside. They earn fixed returns set by regulators, which protects against volatility but caps profit growth. By shedding renewables, Algonquin eliminated higher-growth assets in exchange for lower-risk, slower-growing operations.
For utility investors, this raises a fundamental trade-off. Pure regulated utilities deliver consistent dividends and minimal downside, making them bond-like investments. But if you're seeking growth from the energy transition toward renewables, a company that just sold those assets is moving in the opposite direction.
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Sara Appino has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Spectrum Brands. The Motley Fool recommends British American Tobacco P.l.c. and GSK. The Motley Fool has a disclosure policy.
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