Billionaire David Abrams’ Top 5 Stock Picks

4. PG&E Corporation (NYSE: PCG)

The billionaire David Abrams hedge fund has been holding shares of the electric utility company PG&E Corporation (NYSE: PCG) since the beginning of 2019. It is the fourth largest stock holding of the Boston-based hedge fund, accounting for 7.46% of the 13F portfolio.

The shares of PG&E Corporation recovered strongly in 2020 after experiencing a massive selloff early in 2019. David Abrams mentor Seth Klarman’s Baupost Group has recently commented about few stocks in an investor’s letter and PG&E Corporation is among them. Here is what Baupost Group stated:

“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.”