PG&E's stock — a favorite among the hedge fund elite as recently as September — added to an abysmal slide Tuesday after the company announced the resignation of a longtime board director as the utility grapples with an impending bankruptcy stemming from its alleged part in helping spark a wave of historic wildfires in California.
Renowned hedge funds — including Baupost Group, D.E. Shaw and David Tepper's Appaloosa Management — all had stakes in the San Francisco-based utility as recently as September, just before the deadliest wildfire in California history swept across the state, killing 86 people and destroying about 14,000 homes.
The company's financial calamity took a new turn Monday when PG&E said it plans to file for Chapter 11 bankruptcy protection due to more than $30 billion in potential liability costs stemming from wildfires in 2017 and 2018.
Shares of California's largest investor-owned utility swooned through the end of 2018, tracking the destruction from the so-called Camp Fire and the mounting damage to life and property. The stock is down more than 80 percent over the last three months, with the company's market value dropping more than $30 billion to about $4.7 billion from a peak over $36 billion in 2017, a loss equivalent to the size of eBay.