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Hedge fund Hayman Capital takes stake in GM

(Reuters) – 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 percent over the next 12-18 months after the U.S. Treasury sells its stake in the company, a source familiar with investment said on Wednesday.

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.

Hayman is well known for earning millions by betting against the overheated subprime market before the financial crisis.

In a presentation posted on investing website HVST.com, Hayman founder Kyle Bass called the American car maker 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.”

Bloomberg first reported news of the stake, which it called one of Hayman’s largest investments.

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