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Hedge Funds Jump Into California Utilities, and Some Get Hurt

  • Baupost, Viking among PG&E buyers prior to plunge amid fires
  • Shares rebound after official eases bankruptcy concerns
relates to Hedge Funds Jump Into California Utilities, and Some Get Hurt

Photographer: Noah Berger/Bloomberg

PG&E Corp., the California utility beset by potential costs tied to state wildfires, attracted investments from some of the nation’s best-known hedge funds just before its share price swooned.

Baupost Group, the Boston-based hedge fund run by Seth Klarman, added 14.5 million PG&E shares last quarter, according to the Form 13F the firm filed this week with the U.S. Securities and Exchange Commission. Hound Partners, Viking Global Investors and Appaloosa were also buyers. On a combined basis, the four firms owned 6.8 percent of California’s largest utility as of Sept. 30, up from 1.2 percent at the end of June.