Hayman Says GM Stake Totaled 4.61 Million Shares at Year-End

Feb 14, 2014 10:00 am ET

(Updates shares in final paragraph.)

Feb. 14 (Bloomberg) -- Hayman Capital Management LP held 4.61 million shares of General Motors Co. at the end of 2013, the hedge fund said in a regulatory filing today. The Dallas- based fund said last year that it had taken a passive stake without disclosing the size.

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. Detroit-based GM’s predecessor stopped paying dividends in 2008 to preserve cash before its bankruptcy the following year.

GM rose 1.1 percent to $35.58 at 9:52 a.m. The stock had fallen 14 percent this year through yesterday’s close, while the Standard & Poor’s 500 Index had slipped 1 percent.

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--Editors: Jamie Butters, Niamh Ring