- The paper loss in PG&E amounts to millions of dollars
- A wealth manager picked a bottom that wasn’t.
- California’s wildfires could create even more havoc for the energy utility’s stock.
The damage caused by California’s wildfires is now being felt beyond the United States. Canada’s state-owned wealth manager, Alberta Investment Management Corporation (AIMC), has lost around half the value of its investment in energy utility Pacific Gas and Electric Company (NYSE: PCG) since the beginning of the month.
Wealth manager is millions of dollars poorer from PG&E investment
While the price AIMC initiated the position in PG&E remains unclear, during the period between July 1 and Sept. 30, it could have ranged anywhere between a high of $23.56 and a low of $9.42. With the price of the utility stock at 14:55 UTC being $5.82, this means the value of AIMC’s investment in PG&E has fallen by anywhere between 75% and 38%, depending on when the purchase was made. In absolute terms, that’s a loss of between $10,750,440 and $2,181,600.
PG&E stock price chart | Source: TradingView
As of Dec. 31, 2018, the state-owned wealth manager had assets worth C$108.2 billion ($82.3 billion) under management.
The wildfires have forced PG&E to cut off power distribution to some areas of California. This year the stock has suffered after being forced to file for Chapter 11 reorganization as the potential of massive legal bills from wildfires that occurred in 2018 and 2017 rose.
Energy utility taking the heat from all sides
And even after conducting the power shutoffs,