Third Point, a New York-based investment advisor, released its third-quarter 2022 investor letter. A copy of the same can be downloaded here. In the third quarter, the Third Point Offshore Fund returned -3.2% compared to a -4.9% return for the S&P 500 Index and -6.1% return for the MSCI World Index. In addition, please check the fund’s top five holdings to know its best picks in 2022.
Third Point discussed stocks like PG&E Corporation (NYSE:PCG) in the Q3 2022 investor letter. Headquartered in San Francisco, California, PG&E Corporation (NYSE:PCG) is an electricity and natural gas distribution company. On October 18, 2022, PG&E Corporation (NYSE:PCG) stock closed at $14.15 per share. One-month return of PG&E Corporation (NYSE:PCG) was 8.76% and its shares gained 22.94% of their value over the last 52 weeks. PG&E Corporation (NYSE:PCG) has a market capitalization of $34.886 billion.
Here is what Third Point specifically said about PG&E Corporation (NYSE:PCG) in its Q3 2022 investor letter:
“Since we wrote about PG&E Corporation (NYSE:PCG) in May, the Company has continued to close the valuation gap with its regulated peer group. Over the third quarter PCG’s stock rose 25% versus a 6% decline in the XLU (a proxy for the S&P 500 Utilities Sector). Outperformance was driven by the S&P 500 indexing announcement and continued execution by Patti Poppe, the recently hired CEO, and her team. Management has focused its efforts on mitigating physical and financial risk by building in layers of protection against catastrophic wildfires, financial uncertainty, and rate-payer volatility. Importantly for a utility company, Ms. Poppe has a plan to make much needed investments in safety, reliability, and service quality via capital investment while simultaneously reducing operating expenses.
Despite the recent move, we are optimistic about the Company’s prospects with industry leading 10% EPS growth and likely dividend reinstatement in 2023. PG&E, which currently trades at a 6x discount to peers on ’23 earnings, should continue to re-rate as investors become more familiar with the enhanced regulatory framework under AB1054 and build further confidence in management’s execution capabilities.”
High-voltage power lines. Electricity distribution station. high voltage electric transmission tower. Distribution electric substation with power lines and transformers.
PG&E Corporation (NYSE:PCG) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 51 hedge fund portfolios held PG&E Corporation (NYSE:PCG) at the end of the second quarter which was 51 in the previous quarter.
We discussed PG&E Corporation (NYSE:PCG) in another article and shared the ten best stocks to buy according to billionaire Howard Marks’ Oaktree Capital. In addition, please check out our hedge fund investor letters Q3 2022 page for more investor letters from hedge funds and other leading investors.
Suggested Articles:
- 10 Best FTSE Dividend Stocks To Buy
- 10 Best Japanese Stocks To Buy
- 10 Best Home Builder Stocks To Invest In
Disclosure: None. This article is originally published at Insider Monkey.
