General Motors attracts more hedge funds during the second quarter image

The largest US automaker and the third biggest in the world – General Motors – has been deemed attractive during the second quarter by several major hedge fund managers.

The moves come even as the carmaker is still entrenched in a legal conundrum revolving around its botched safety campaign involving deadly ignitions witches and some haggling with shareholders over its stock price. According to a recent regulatory filing, Greenlight Capital’s David Einhorn purchased another 7.9 million shares between April and the end of June, lifting his stake to 14.6 million shares. Additionally, Soroban Capital accessed a new position in GM, buying 3.5 million shares, with Leon Cooperman’s Omega Advisors also acquiring 1.8 million shares thus lifting their holding to 3.6 million shares. Investment managers are compelled to reveal what they own at the end of every quarter and these fillings – though looking into the past – usually deliver future investment trends.

GM is one of the most iconic US companies, being the world’s best selling automaker for decades. But it recently had to reclaim the confidence of investors after filing for bankruptcy under government protection back in 2009 and also was involved in a skirmish earlier this year with a group of activist investors. To avert a proxy fight for board seats, the company agreed to buy back stock worth five billion dollars to increase the amount of cash it gives back to investors. The automaker posted stellar financial results during its second quarter financial announcement, though the stock is still down around 10 percent for the year.

Via Reuters