A source familiar with investment reported that hedge fund Hayman Capital has taken a stake in General Motors Co and believes the U.S. automaker’s stock could rise more than 40 % over the next 12-18 months after the U.S. Treasury sells its stake in the company.
Hayman Capital’s move into GM comes as the U.S. government is in the process of selling its remaining stake in the company and as other new potential investors eye the stock, said two people working at a different hedge fund but who were not permitted to speak to the media.
In a presentation posted on investing website HVST.com, Hayman founder Kyle Bass called the American carmaker one of the best investments available now.
“GM equity represents one of the most compelling risk/reward situations of any large cap in the world today,” he said in the presentation. “Detroit is back. And GM could lead the way forward on the equity front.”
GM shares were up 1.2 %, or 44 cents, at $38.58 in afternoon trade on the New York Stock Exchange.
Treasury has said it will exit its remaining GM stake of about 2 % by year-end, and investors expect the automaker to initiate a common stock dividend and ramp up stock buybacks once that has occurred.