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Baupost Group is Betting on PG&E Corporation (PCG) Stock

Baupost Group recently released its Q2 2020 Investor Letter, a copy of which you can download here. The fund posted strong gains for the quarter, a substantial but not quite complete rebound from the first quarter drop. You should check out Baupost Group’s top 5 stock picks for investors to buy right now, which could be the biggest winners of the stock market crash.

In the said letter, Baupost Group highlighted a few stocks and PG&E Corp (NYSE:PCG) is one of them. PG&E Corp (NYSE:PCG) is a natural gas company. Year-to-date, PG&E Corp (NYSE:PCG) stock lost 17.3% and on August 19th it had a closing price of $9.23. Baupost Group cared to mention PG&E Corp (NYSE:PCG) in its investor letter, though they didn’t say why they really like the stock. All they said is this:

“Fortunately, our investment in the subrogation claims and equity of Pacific Gas and Electric, the firm’s largest position, was not impacted by the COVID-19 fallout. As we expected, PG&E’s bankruptcy plan was confirmed by the judge overseeing the case, and the company emerged from bankruptcy on July 1st . Importantly, upon emergence, cash was placed in a trust for the benefit of the subrogation creditors. A substantial initial distribution from this trust, estimated to be roughly 80% of anticipated recoveries, is expected to be paid later this month.”

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Earlier this month, we published an article revealing that Third Point is bullish about PG&E Corp (NYSE:PCG) stock. The investment firm believes that the company’s core business remains resilient to the COVID-19.

In Q1 2020, the number of bullish hedge fund positions on PG&E Corp (NYSE:PCG) stock decreased by about 4% from the previous quarter (see the chart here), so a number of other hedge fund managers don’t seem to agree with PG&E’s growth potential. Our calculations showed that PG&E Corp (NYSE:PCG) is ranked #28 among the 30 most popular stocks among hedge funds.

The top 10 stocks among hedge funds returned 185% since the end of 2014 and outperformed the S&P 500 Index ETFs by more than 109 percentage points. We know it sounds unbelievable. You have been dismissing our articles about top hedge fund stocks mostly because you were fed biased information by other media outlets about hedge funds’ poor performance. You could have doubled the size of your nest egg by investing in the top hedge fund stocks instead of dumb S&P 500 ETFs. Below you can watch our video about the top 5 hedge fund stocks right now. All of these stocks had positive returns in 2020.

Video: Top 5 Stocks Among Hedge Funds

At Insider Monkey we scour multiple sources to uncover the next great investment idea. We go through lists like the 10 most profitable companies in America to pick the best large-cap stocks to buy. Even though we recommend positions in only a tiny fraction of the companies we analyze, we check out as many stocks as we can. We read hedge fund investor letters and listen to stock pitches at hedge fund conferences. If you want to find out the best healthcare stock to buy right now, you can watch our latest hedge fund manager interview here. You can subscribe to our free enewsletter below to receive our stories in your inbox:

Disclosure: None. This article is originally published at Insider Monkey.