Jeffrey Altman’s Owl Creek Asset Management is Buying These 5 Stocks

3. PG&E Corporation (NYSE:PCG)

Owl Creek’s Stake Value: $126,644,000

Percentage of Owl Creek’s 13F Portfolio: 5.81%

Number of Hedge Fund Holders: 64

PG&E Corporation is an investor-owned natural gas and electric service provider based in the USA.

In its Q4 2020 investor letter, GoodHaven Capital Management positively mentions PG&E Corporation. Here is what the letter says:

“During the period we purchased a new holding – PG&E Corporation – the California based utility (PCG). We expect that contrarian special situations will continue to (opportunistically) be an important part of the portfolio. After all, we bought PCG – which has filed Ch. 11 twice related to prior exposure to wildfire liabilities and staggering mismanagement – right in the middle of California’s recent heavy wildfire season. Our thinking here is that the reorganized utility has new regulatory protections that significantly reduces wildfire liability exposure, an above average rate growth profile and potentially much better management – they were searching for a new CEO when we made our investment. We purchased the stock at a high single digit forward earnings multiple, a discount to its peers that trade in the mid to high teens. Shortly after our purchases PG&E hired the well-regarded Patti Poppe as their new CEO – we like this decision.”