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

Part II: Roubini Talks Risk, Recovery And The Threat Of A Triple Dip Recession

Oct 21 2014 | 12:41pm ET

In the second half of our interview with Nouriel Roubini, FINalternatives editor...

Lifestyle

Balyasny Pays Over $6M For Lakefront House

Oct 22 2014 | 10:29am ET

A venture headed by hedge fund manager Dmitry Balyasny just paid $6.2 million for...

Guest Contributor

Hedge Funds Weather A Data Management Perfect Storm

Oct 22 2014 | 12:28pm ET

From a regulatory standpoint, nearly every development since the crisis has placed...

 

Videos

Editor's Note

    Guidelines for Guest Articles

    Oct 22 2014 | 9:46am ET

    We are always looking for guest articles from hedge fund managers and buy-side firms.

    If you are interested in submitting a contributed piece for possible publication on FINalternatives, please take a look at the specs. Read more…

 

Futures Magazine

October 2014 Cover

Demeter: Family affair

David and James Hamman launched their fundamental Livestock and Grains Program in March of 2010 but it really was decades in the making.

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.