Bass's Hayman Capital Has Taken Stake in General Motors, Spokesperson Says Not Aware of Funds Position

Bloomberg's Real M&A on November 26 speculated that General Motors GM could potentially be a company on activist investors and hedge funds radars due to its “fortress balance sheet” and a more favorable operating environment, as the U.S. Treasury is set to liquidate its position in the Detroit automaker by the end of the year. Bloomberg reported on Wednesday that Kyle Bass's Hayman Capital Management has taken a stake in GM. Hayman Capital focuses on corporate turnarounds and is famously known for betting against subrpime mortgages and coming out of the 2007-2008 economic downturn with billions of dollars in profits. In a presentation published on HVST.com, Hyman Capital anticipates shares of GM to increase in value by more than 40 percent over the next 12 to 18 months. “GM equity represents one of the most compelling risk/reward situations of any large cap in the world today,” Bass said in the presentation. “Detroit is back. And GM could lead the way forward on the equity front.” Related: U.S. Auto Sales: Who Gained, Who Lost? According to Bass, shares are undervalued despite trading near 52-week and multi-year highs. GM trades at three times earnings before interest, taxes, depreciation and amortization, while Ford F trades at 4.4 times EBITDA. According to Bloomberg's correspondences with GM, the automaker is unaware of any position the fund has taken in the company. Shares of GM reached new 52-week highs of $39.45 during Wednesday's morning trading session, up more than three percent for the day.