Klarman, Tepper Might Be Trapped in PG&E’s Latest Mess

A court ruling sent the stock tumbling, but some hedge funds managed to escape first.

David Paul Morris/Bloomberg

David Paul Morris/Bloomberg

The California utility PG&E has become a virtual hedge fund hotel this year, after potential liabilities associated with a horrific wildfire last year led the company to seek bankruptcy protection.

Hedge funds seizing on a distressed asset ramped up their bets on PG&E after California regulators said in January that the utility wasn’t responsible for the fire — the second worst in California’s history.

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