Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Were Hedge Funds Right About Souring On PG&E Corporation (PCG)?

Is PG&E Corporation (NYSE:PCG) worth your attention right now? The best stock pickers are reducing their bets on the stock. The number of long hedge fund positions retreated by 2 in recent months. Our calculations also showed that PCG isn’t among the 30 most popular stocks among hedge funds.

At the moment there are numerous methods shareholders have at their disposal to size up stocks. A duo of the best methods are hedge fund and insider trading signals. We have shown that, historically, those who follow the best picks of the top investment managers can outpace their index-focused peers by a solid amount (see the details here).

BlueMountain Capital Management's Returns, AUM and Holdings

We’re going to check out the latest hedge fund action regarding PG&E Corporation (NYSE:PCG).

How are hedge funds trading PG&E Corporation (NYSE:PCG)?

At the end of the fourth quarter, a total of 58 of the hedge funds tracked by Insider Monkey were long this stock, a change of -3% from one quarter earlier. The graph below displays the number of hedge funds with bullish position in PCG over the last 14 quarters. So, let’s find out which hedge funds were among the top holders of the stock and which hedge funds were making big moves.

PCG_mar2019

According to publicly available hedge fund and institutional investor holdings data compiled by Insider Monkey, Baupost Group, managed by Seth Klarman, holds the most valuable position in PG&E Corporation (NYSE:PCG). Baupost Group has a $367.5 million position in the stock, comprising 3.2% of its 13F portfolio. On Baupost Group’s heels is D E Shaw, led by D. E. Shaw, holding a $229.9 million position; 0.3% of its 13F portfolio is allocated to the stock. Other members of the smart money that are bullish comprise Kevin Michael Ulrich and Anthony Davis’s Anchorage Advisors, Andrew Feldstein and Stephen Siderow’s Blue Mountain Capital and Jonathan Auerbach’s Hound Partners.

Judging by the fact that PG&E Corporation (NYSE:PCG) has faced declining sentiment from hedge fund managers, it’s easy to see that there is a sect of hedgies that decided to sell off their positions entirely in the third quarter. At the top of the heap, Andreas Halvorsen’s Viking Global dumped the biggest investment of the 700 funds followed by Insider Monkey, valued at about $263.6 million in stock. Jos Shaver’s fund, Electron Capital Partners, also sold off its stock, about $66.1 million worth. These moves are interesting, as aggregate hedge fund interest fell by 2 funds in the third quarter.

Let’s go over hedge fund activity in other stocks – not necessarily in the same industry as PG&E Corporation (NYSE:PCG) but similarly valued. We will take a look at CoStar Group Inc (NASDAQ:CSGP), Cadence Design Systems Inc (NASDAQ:CDNS), Teck Resources Ltd (NYSE:TECK), and CDW Corporation (NASDAQ:CDW). This group of stocks’ market valuations are closest to PCG’s market valuation.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
CSGP 23 753921 -6
CDNS 29 1178250 -3
TECK 26 1011650 -9
CDW 26 861436 -2
Average 26 951314 -5

View table here if you experience formatting issues.

As you can see these stocks had an average of 26 hedge funds with bullish positions and the average amount invested in these stocks was $951 million. That figure was $2497 million in PCG’s case. Cadence Design Systems Inc (NASDAQ:CDNS) is the most popular stock in this table. On the other hand CoStar Group Inc (NASDAQ:CSGP) is the least popular one with only 23 bullish hedge fund positions. Compared to these stocks PG&E Corporation (NYSE:PCG) is more popular among hedge funds. Considering that hedge funds are fond of this stock in relation to its market cap peers, it may be a good idea to analyze it in detail and potentially include it in your portfolio. Our calculations showed that top 15 most popular stocks among hedge funds returned 19.7% through March 15th and outperformed the S&P 500 ETF (SPY) by 6.6 percentage points. Unfortunately PCG wasn’t in this group. Hedge funds that bet on PCG were disappointed as the stock lost 17.2% and underperformed the market. If you are interested in investing in large cap stocks, you should check out the top 15 hedge fund stocks as 13 of these outperformed the market.

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

DOWNLOAD FREE REPORT: Warren Buffett's Best Stock Picks

Let Warren Buffett, George Soros, Steve Cohen, and Daniel Loeb WORK FOR YOU.

If you want to beat the low cost index funds by 19 percentage points per year, look no further than our monthly newsletter.In this free report you can find an in-depth analysis of the performance of Warren Buffett's entire historical stock picks. We uncovered Warren Buffett's Best Stock Picks and a way to for Buffett to improve his returns by more than 4 percentage points per year.

Bonus Biotech Stock Pick: You can also find a detailed bonus biotech stock pick that we expect to return more than 50% within 12 months.
Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.
Loading...