Hayman Joins Jana, Eton Buying GM as U.S. Treasury ExitedTim Higgins
Hayman Capital Management LP joined Eton Park Capital Management LP, Moore Capital Management LLC and Omega Advisors Inc. among hedge funds that bought shares in General Motors Co. last year as the U.S. shed its final stake.
J. Kyle Bass, who founded Hayman Capital, said last year that GM should increase in value by more than 40 percent in 12 to 18 months, basing his projections for the stock gain on the automaker issuing a dividend equal to half of its 2014 free cash flow, which he estimates as $4.1 billion. That’s more than what some analysts predict the automaker will spend.
The largest U.S. automaker said last month that it will pay a quarterly dividend of 30 cents a share in March. GM’s predecessor stopped paying dividends in 2008 to preserve cash before its bankruptcy the following year. Mary Barra, promoted to chief executive officer on Jan. 15, has said she will continue with the strategies she helped shape under her predecessor, Dan Akerson, including keeping what company executives call a “fortress balance sheet.”
Hayman held 4.61 million shares of GM at the end of 2013, the hedge fund said in a regulatory filing yesterday. The Dallas-based fund said last year that it had taken a passive stake without disclosing the size.
Others increased their holdings. Jana Partners LLC, which bought 7.57 million shares of Detroit-based GM, brought its total holding to almost 8 million shares worth $326 million as of Dec. 31. Jana, the $8 billion hedge-fund firm run by Barry Rosenstein, is based in New York.
Moore Capital, the $14.9 billion New York-based firm run by Louis Moore Bacon, added more than 4.3 million shares of GM to bring its holdings to 4.8 million, valued at $198 million, according to a regulatory filing yesterday.
Blackrock Inc. increased its stake to 4.84 percent in GM with an additional 11.8 million shares, according to data compiled by Bloomberg. Soros Fund Management LLC, founded by billionaire investor George Soros add 3.62 million shares.
Paulson & Co. held 1.87 million shares in GM. The hedge fund owned by billionaire John Paulson also held 1.7 million in warrants expiring in July 2016 and 1.7 million of warrants with a July 2019 expiration.
Neuberger Berman Group LLC, the mutual fund, acquired 11.2 million shares while Leon Cooperman’s Omega purchased 1.05 million shares. Eric Mindich’s Eton Park bought 2.74 million shares, according to data compiled by Bloomberg.
GM rose 2.1 percent to $35.95 at the close yesterday. The stock has fallen 12 percent this year, while the Standard & Poor’s 500 Index has slipped 0.5 percent.