Hayman Capital Management LP now owns a holding in General Motors Co., a person privy with the matter told Bloomberg. Hayman Capital, in a presentation published on the website HVST.com, said that GM’s share value is poised to increase by over 40 percent in 12 to 18 months as the United States government steadily divests its stake in the carmaker.
According to the source, the GM stake is one of the Hayman Capital’s largest investments. GM equity represents one of the most compelling risk/reward situations of any large cap in the world today," Hayman Capital said in the presentation. The US Treasury expects to sell its remaining 31.1 million GM common shares by the end of 2013, depending on market conditions.
Hayman Capital founder J. Kyle Bass remarked in a phone interview with Bloomberg that the exit of the US government from GM is what has prompted the fund to acquire a stake in the US carmaker.
Bass, who is known for his perceptive gamble against subprime home mortgages before the financial crisis, remarked that the US government “will be out of the way before the end of the year,” adding that "they've been a source of constant selling pressure in the equity this year."
Bloomberg News recently reported that GM could become a target for activist investors as the US government exits from the carmaker. Harry J. Wilson, a member of the US auto task force that helped rebuild GM in its bankruptcy, told Bloomberg that activist investors may press the carmaker for more dividend payouts or stock buybacks.