Hedge funds take fresh look at General Motors in second quarter

The General Motors logo is seen outside its headquarters at the Renaissance Center in Detroit, Michigan in this file photograph taken August 25, 2009.  REUTERS/Jeff Kowalsky/Files

The General Motors logo is seen outside its headquarters at the Renaissance Center in Detroit, Michigan in this file photograph taken August 25, 2009. REUTERS/Jeff Kowalsky/Files

16 August 2015

Tags:business, business news  financial news, business finance, small business websites


Several prominent hedge fund managers made bigger bets on U.S. automaker General Motors (GM.N) during the second quarter, despite the company’s battling a deadly ignition defect and tangling with shareholders over its stock price.

Greenlight Capital’s David Einhorn bought 7.9 million shares between April and the end of June, raising his investment to 14.6 million shares. Einhorn had told investors about the stake but details on how much he actually bought were only released on Friday in a regulatory filing.

For Einhorn it marks the return to a company he had long invested in but exited nearly a year earlier.

Soroban Capital opened a new position in GM, buying 3.5 million shares, while Leon Cooperman’s Omega Advisors bought 1.8 million shares, raising the firm’s stake to 3.6 million shares.

Investment managers are required to say what they owned at the end of every quarter and these so-called 13-F filings, while backward looking, often highlight new investment trends.

GM ranks as one of the most iconic U.S. companies. But it faced a distracting battle with shareholders earlier this year when a group threatened to mount a proxy fight for board seats in order to push the carmaker to give some of its cash to investors.

The company approved plans to buy back $5 billion in stock.

Hedge fund mogul David Tepper was one of the investors pressuring the company early in the year and in the second quarter his Appaloosa Management bought an additional 3.5 million shares, raising its stake to 18.8 million.

Taconic Capital Advisors, a long-time investor, bought only a few more shares, to push its investment to 8.2 million. Kyle Bass’ Hayman Capital, one of the dissident investors, kept its stake unchanged.

Faulty ignition switches have been linked to more than 100 deaths. But stronger second-quarter earnings helped the stock price gain last month even though it is still off 10 percent for the year, closing at $31.50 on Friday.

Tags:business, business news  financial news, business finance, small business websites

Source

 


 

 

Business see also….

 

The Donald Overshadows a Clinton at Iowa State Fair

16 August 2015

Donald Trump-business-people re-el magazine“She had a crowd one-tenth of what I have,” Trump bragged to reporters, in a reference to Clinton,….read more

 

 


VW Has Spent Two Years Trying to Hide a Big Security Flaw

15 August 2015

Cars-business-people re-el magazineGot a VW, Fiat, Audi, Ferrari, Porsche or Maserati? Then you might want to check the model….read more

 

 


IMF Calls China’s Yuan Moves Welcome Step to More Flexible Rate

15 August 2015

China Yuan-business people re-el magazineThe International Monetary Fund said China’s move to link the yuan’s value to market forces is ….read more

 

 


‘Flash crash’ trader freed on bail

15 August 2015

flash crash trader-business-people re-el magazineA UK trader accused of contributing to the 2010 US “flash crash” has been freed on bail after his conditions….read more

 

 


Australia’s biggest bank posts record results

13 August 2015

commonwealth-business-people re-el magazineThe Commonwealth Bank of Australia has posted a record full year net profit of A$9.1bn (£4.2bn, $6.6bn)….read more

 

 

 


Categories