Hedge Fund Takes GM Stake

Hegde fund Hayman Capital Management has taken a stake in General Motors.You're starting to see them take market share back,said Hayman founder and managing partner Kyle Bass.With their new 2014-15 product line,they're gonna increase dividends and buy back stock.Given how cheap the stock is,we think it should be trading in line with Ford.When you look at the enterprise value,it's about 47 billion dolars.
A 100 basis point move takes eight points away from their pension liability.We think that could actually go down to 17 billion dollars.We just think from a catalyst-driven timing perspective,now is the time to invest in GM.
The new GM products will take North American sales back.You have them really working on all cylinders.Motor Trend gives it the New Product of the Year last year.We think it's incredibly cheap and it's gonna move much higher next year,Mr.Bass noted.*
The federal government has announced it has exited its stake in GM,as Mr.Bass predicted it would by the end of the year.The taxpayer lost 10 billion dollars on the bailout of the automaker.*
GM shares closed at 40.90 in Monday trading,up 1.82%.