Hayman Invests In GM

Dec 5 2013 | 11:30am ET

As the U.S. Treasury unloads its stake in General Motors, hedge fund Hayman Capital Management is buying up shares of the automaker.

The Dallas-based hedge fund said it expects GM shares to appreciate by more than 40% over the next 12 to 18 months. "The U.S. government will be out of the way before the end of the year," firm founder Kyle Bass told Bloomberg News. "They've been a source of constant selling pressure in the equity this year."

But having GM's largest shareholder—the result of a 2008 bailout—end its sales isn't the only thing attracting Bass to GM. Hayman called the company "one of the most compelling risk/reward situations of any large cap in the world today," writing in a presentation that "Detroit is back."

Hayman said that GM is now one of its largest positions.

In part, Bass is bullish on a potential GM dividend, which he projects will be half of its 2014 free cash flow. Most GM analysts believe that the company, which hasn't paid a dividend in five years, won't be so generous.


In Depth

Fundraising for Mid-Sized PE Funds: Should You Use a Registered B/D?

Dec 6 2016 | 7:18pm ET

When does a fund sponsor need to use a registered broker/dealer when raising capital...

Lifestyle

Trump Attends 'Villains and Heroes' Costume Party Dressed As...Himself

Dec 5 2016 | 11:16pm ET

U.S. President-elect Donald Trump attended a "Villains and Heroes" costume party...

Guest Contributor

A Hard Look At Your ‘Soft’ Hedge Fund Marketing Information

Dec 8 2016 | 9:03pm ET

Conventional wisdom holds that due diligence examines quantitative as well as qualitative...

 

From the current issue of

Since the inception of Modern Trader, a core editorial theme has centered on the wisdom and power of crowds. Editorial emphasis has focused on companies and projects engaged in the collection and analysis of information. 

AVAILABLE NOW at BARNES & NOBLE

NEWSTAND LOCATOR