5 Stocks to Sell Now According to Billionaire David Tepper

2. PG&E Corporation (NYSE:PCG)

Number of Hedge Fund Holders: 51

PG&E Corporation (NYSE:PCG) supplies electricity in parts of the United States to over 5 million households. It is an investor-owned utility. Appaloosa Management began acquiring the shares in Q3 2020 and dumped the stock entirely in the quarter ending June 30.

PG&E Corporation (NYSE:PCG) faced a major setback due to the 2018 California wild-fires claims and had to file for bankruptcy to access liquidity. Prior to filing for bankruptcy, the company was booted out of the S&P 500. However, the restoration might now be possible, as CFO, Christopher Foster said in May:

“We recorded GAAP income of $475 million, including noncore items for the first quarter of 2022. This means we’ve recorded cumulative positive GAAP earnings of $253 million for the most recent 4 consecutive quarters, which means we have met the eligibility requirements for S&P 500 index inclusion.”

According to Insider Monkey database, 51 hedge funds had stakes in PG&E Corporation (NYSE:PCG) in Q2 2022, with a combined value of $2.67 billion. Dan Loeb’s Third Point held the most prominent position in the quarter, with 65.4 million shares worth $652.69 million.

Here is what GoodHaven Capital Management said about PG&E Corporation (NYSE:PCG) in its Q2 2022 investor letter:

“Other activity in the period included eliminating our holding in PG&E Corporation (NYSE:PCG) and adding a few new holdings – the luxury furniture and lifestyle company RH (formerly Restoration Hardware) and Goldman Sachs. A few important developments changed at PG&E including higher future capex plans and changes in long-term guidance, and so we changed our mind and sold. Purchases were made on a handful of occasions in 2020 and mid-2021 at an approximate average price of $9.20 and fully sold during February 2022 at an approximate average price of $11.42, earning approximately 24%.”