Monday, 27 April 2015
Last updated 1 hour ago
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.
Mar 20 2015 | 12:45pm ET
StreetWise Partners, a non-profit organization that works with low-income individuals to help them overcome employment barriers, raised over $275,000 at the 2015 Raising the Ante Charity Poker Tournament and Casino Event last Wednesday evening at Capitale. Here are some photos from the event. Read more…