New York partner Michael Halsband was quoted in Bloomberg in an article titled “Hedge Fund Baupost Has a Complex $1 Billion Bet on PG&E,” on hedge fund Baupost purchasing claims before PG&E Corp. announced plans for bankruptcy.
The article notes that while subrogation claims are routine within the insurance industry, insurers are typically reluctant to sell such claims. Michael said, “It would be fair to say that it’s uncommon on a scale of the type we are presently seeing explored. But there has been a great deal of interest around it ever since the recent events with the wildfires.”
As stated in the article, there have been a significant number of wildfire claims against PG&E. In California, utilities may be held liable for property damage from a fire found to have been caused by their equipment.
Contrasting man-made catastrophic events with natural catastrophes, Michael quipped “When you have a hurricane, you can’t go suing God for the losses.”