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Pacific Gas and Electric Company

PCG position long Ray Kennedy, Hotchkis & Wiley

Thesis

Ray Kennedy mentions that PG&E bonds, especially post-bankruptcy, are attractive as they are undervalued. He believes that the company's issues are tied to specific risks rather than broader macroeconomic challenges, making their bonds a compelling investment.

Did it work?

inconclusive confidence: low

The pitch is a long thesis on PG&E bonds being undervalued post-bankruptcy, but no price performance data and no time elapsed are provided, so the return cannot be weighed against the thesis. There is also no information confirming or refuting the core claim that the company's risks were specific and manageable rather than structural. Without either a measurable return or evidence that the undervaluation closed, the outcome cannot be judged.