Key Takeaways:
- GE Vernova stock has surged since GE’s breakup in April 2024, fueled by growing electricity demand from artificial intelligence technologies.
- Top-performing Fidelity fund manager Matt Fruhan carries heavy weightings in GE Vernova stock across a number of portfolios.
- The largest weighting in GE Vernova stock is in the IPO-focused First Trust US Equity Opportunities ETF.
Since its spinoff from General Electric in 2024, GE Vernova GEV has been a supercharged stock, gaining 87% this year alone and powering returns for funds that have placed big bets on the company.
That’s especially been the case for a handful of top-performing Fidelity Investments funds run by Matt Fruhan, along with the $1.0 billion First Trust US Equity Opportunities ETF FPX, which has 10.5% of its assets in the stock, according to Morningstar Direct. Strategies run by veteran fund manager Tom Marsico, who specializes in concentrated growth-stock portfolios, also rank among those with the biggest wagers on GE Vernova stock.
Power-Hungry AI Fuels the Vernova Stock Rally
GE Vernova, which manufactures and services power generation and distribution equipment, was formed in April 2024 in the final breakup of GE. Since then, the firm’s stock has risen 333%, having gained 87% in 2025 alone. The Morningstar US Market Index is up 25.0% since GE Vernova broke off from GE and gained 10.7% in 2025.
The GE spinoff couldn’t have come at a better time for a company whose fortunes are closely tied to the need for electrical power.
“They are the US leader in turbines used for gas power plants, which are seeing a resurgence in demand thanks to AI power demand. And the company also provides critical grid equipment, such as transformers and switchgear, which are currently in short supply,” says equity analyst Brett Castelli, who focuses on energy and utilities for Morningstar. “In short, GE Vernova is a prime beneficiary of rising electricity demand.”
How Many Funds Hold GE Vernova Stock?
GE Vernova makes up a relatively tiny slice of the overall stock market, comprising just 0.3% of the Morningstar US Market Index. At the time of the spinoff, GE Vernova stock landed in mid-cap territory with a market capitalization of $37 billion, but it’s now a large-cap stock at $156 billion and is classified by Morningstar as a large-cap core stock in the Morningstar Style Box.
To see which stocks have gotten a boost from GE Vernova, we screened all diversified US stock funds—which excludes sector funds—with over $100 million in assets. (This data reflects most-recently reported positions. Funds may have reduced, eliminated, or added GE Vernova positions after the reporting dates.)
Of the 2005 funds screened, 442 held GE Vernova stock; of these, 92 had 1% or more of their portfolio allocated to the stock, while 36 held 2% or more in GE Vernova stock. Among the funds holding GE Vernova stock, most land in the large-blend Morningstar Category, where it accounts for 0.3% of the Morningstar US Large-Mid Cap Index. Large-cap growth funds also rank among holders of GE Vernova stock. Here, the Morningstar US Large-Mid Cap Broad Growth Index has a 0.5% weighting to the stock.
What Funds Have the Biggest Weights in GE Vernova Stock?
Of the top 10 holders of GE Vernova, the strategy with the largest weighting is the $1.0 billion First Trust US Equity Opportunities ETF. The Bronze-rated fund, which tracks an index of 100 of the largest companies that have recently gone public, has a 10.5% allocation to the stock, its largest holding.
The fund is up 26.3% in 2025, putting it in the top 3% of funds in its mid-cap growth category. The benchmark index for that category, the Morningstar US Mid Cap Broad Growth Index, does not include GE Vernova stock.
GE Vernova contributed 5.6 percentage points to First Trust US Equity Opportunities ETF’s returns in 2025, or about a fifth of its overall gains. The stock is the second-largest contributor to the fund’s returns, beaten only by data firm Palantir PLTR, which contributed 6.5 points over that period.
The third-largest holder is the $571 million Marsico Midcap Growth Focus Fund MIDFX, which holds a 5.1% weighting to the stock, its largest holding. The fund has returned 22.6% in 2025, putting it in the fourth percentile of the mid-cap growth category. GE Vernova has been the largest contributor to the fund’s 2025 returns, contributing 3.6 points, according to data from Morningstar Direct, more than any other stock except Palantir.
Fidelity’s Fruhan Bets Big on GE Vernova Stock
Another swathe of the funds with the biggest weightings of GE Vernova stock are those run by Fidelity fund manager Matt Fruhan, which have more than $50 billion in assets between them.
Fruhan’s largest bets on GE Vernova are in a series of four large-cap blend funds that all follow the same strategy: The $5.6 billion Fidelity Advisor Capital Development Fund FDETX, the $6.1 billion Fidelity Large Cap Stock Fund FLCSX, the $1.9 billion Fidelity Advisor Large Cap FIDLX, and the $22.6 billion Fidelity Large Cap Stock FGLGX. Each has a 4.4% weighting to GE Vernova, which is the funds’ fifth-largest holding.
The benchmark for the large-cap blend Morningstar Style Box, the Morningstar US Large-Mid Cap Index, has a 0.3% allocation to the stock. Only the Fidelity Advisor Capital Development Fund was included in the fund tables, as all four funds follow the same strategy.
“We believe the market has significantly mispriced the stock of GE Vernova, underestimating the firm’s balance-sheet strength and earnings power,” Fruhan wrote in the 2025 second-quarter review for the Fidelity Large Cap Stock Fund. “We believe the company particularly stands to benefit from growing demand for electricity, which has seen underinvestment for decades. In addition, the company’s management is laser-focused on increasing its operating margin—an important part of our investment thesis.”
The Fidelity Advisor Capital Development Fund has gained 17.2% in 2025, putting it in the top 2% of funds in the large-blend category, based on both three-year and five-year trailing returns. This mirrors the fund’s longer-term performance.
“Since 2005, [Fruhan] has consistently plied a gritty approach that often embraces unloved or fundamentally challenged companies, avoids firms whose shares he thinks have been bid up by market mania, and looks for secular-growth companies whose magnitude or duration of growth is underappreciated,” says Robby Greengold, principal for equity strategies at Morningstar. “At the core of his bottom-up approach is the belief that the market routinely misprices companies’ earnings power over a multiyear horizon.”
Of the fund’s 18% gain for the year to date, GE Vernova contributed 2.8 points, the second-most of any stock, only trailing GE Aerospace, which contributed 3.0 points, according to Morningstar Direct.
Fruhan also manages the $12.8 billion Fidelity Growth & Income FGIKX, which is in the large-cap value category. Fidelity Growth & Income has a 3.8% weighting to the stock, its sixth-largest holding, while the large-cap value category’s benchmark, the Morningstar US Large-Mid Broad Value Index, does not include it.
“The Fidelity Growth & Income strategy, which includes Fidelity Advisor Growth & Income, benefits from its seasoned portfolio manager and skillful navigation of areas off the beaten path,” says Greengold.