Iconic hedge-fund billionaire Seth Klarmans Baupost Group loaded up on 14.5 million shares ofPG&E,Californias biggest utility provider, in the third quarter.

The utility has been under pressure since November, as it may be responsible for thedeadliest and most destructive wildfire in California history.

Its unclear if Baupost sold any PG&E shares in the fourth quarter or the first quarter. If the firm held on to its entire position

, it could have lost $400 million just from the holdings it

Iconic hedge-fund billionaire Seth Klarman could have taken a huge hit on an investment in PG&E Californias biggest utility provider after thedeadliest and most destructive wildfire in California history.

Soon afterthewildfirebroke out on November 8, theutilitysaid it was having trouble with its transmission lines, and that it may be responsible. Since then,PG&Eshares have plunged as much as 67%.

The stock recovered a bit afterCalifornia Public Utilities Commission PresidentMichael Picker told mediain mid-November that he couldnt imagine letting the California utility declare bankruptcy evenas it faces huge liabilities.

But PG&E has been under pressure again in the new year. Late Friday, a report said PG&E was consideringfiling for bankruptcy protection.And on Tuesday,S&P Global Ratings slashed PG&Es credit rating to junk, sayingnegative public sentiment and the increased political pressure will challenge the regulators willingness and ability to implement measures to protect credit quality over the near term. Shares have tanked nearly 30% this week.

Klarmans Baupost could be paying the price. Baupost loaded up 14,479,790 shares on PG&E in the third quarter, becoming the utilitys sixth-largest shareholder with 18,979,790 shares, according to Bloomberg data.

The 14.5 million shares were trading at around $45 apiece in the third quarter, and only worth $17.50 as of Tuesday. Its unclear if Baupost sold any PG&E shares in the fourth quarter or so far this year. If the firm held its entire position through Tuesday, it could have lost $400 million over the past few months not including the shares it owned before the third quarter.

On Monday, Baupost declined to comment on its investments.

Baupost is not the only investment firm that recently increased its stake in the California utility. BlueMountain Capital Management, which manages $21 billion, told investors in a recent letter obtained by Business Insider it has doubled down on its investment into the utility asit believes the market has overreacted to the impact of the deadly Camp Fire.

$21 billion hedge fund BlueMountain Capital has upped its bet on PG&E, the utility thats crashed 60% since the California wildfires. Heres why.

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Iconic hedge-fund billionaire Seth Klarman could have lost $400 million on an ill-timed bet on PG&E (PCG)