Baupost Collects $3 Billion Wagering on PG&E’s Wildfire Claims
- Payout was hedge fund’s biggest profit generator last month
- Klarman’s firm is known for navigating litigation, bankruptcy
Photographer: Philip Pacheco/AFP via Getty Images
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Baupost Group, the hedge fund run by Seth Klarman, received more than $3 billion in July from its bet on insurance claims against PG&E Corp. connected to a series of deadly California wildfires, according to people with knowledge of the matter.
The payout yielded Baupost’s biggest profit generator last month and represented a sizable markup from what the firm had anticipated, it told investors Thursday. The fund bought $6.8 billion of subrogation claims against PG&E, court documents show.