The California Utility company PG&E (PCG US) dropped over 20% on Monday as it was reported that it is exploring filing for bankruptcy. The bankruptcy would be due to massive liabilities it expect to face post wildfires in California in 2018. A bankruptcy could be a severe hit to plenty of hedge funds. According to filings numerous hedge funds bought shares in PG&E in Q3 2018. Bloomberg writes;

Top hedge funds scooped up or held shares of PG&E Corp. in the third quarter, with the beaten down stock of the California utility appearing to be a good value. Since then it has taken more pounding.

PG&E shares are down almost 60% since September 30th. Notable hedge funds with stakes in PG&E are Baupost ($867m stake as of Q3), D.E. Shaw ($311m stake as of Q3), Viking Global ($128m stake as of Q3) and Appaloosa ($184m stake as of Q3).

Source: Bloomberg

According to WhaleWisdom, 20 hedge funds had PG&E as a top 10 holding as September 30th. 21 funds initiated a new position, while 34 funds added to an existing position in Q3.  In total, over 85 hedge funds had a position in the company as of September 30th   2018.

If would a severe blow to countless of funds if PG&E files for bankruptcy.