Kyle Bass Says Why He is Bullish on General Motors Company (GM) and Nationstar Mortgage Holdings Inc (NSM)

In an interview with CNBC’s Squawk on the StreetKyle Bass,  founder and manager of the Dallas-based hedge fund, Hayman Advisors, claims that shares of General Motors Company (NYSE:GM) are undervalued and could hit a high $50 per share in the next 12 to 18 months, despite possible liability from ongoing probe over the 303 deaths as a result of air bag failure in some of GM’s models, calling it an “investment distraction”.

Kyle Bass

In its latest 13F filing, the company revealed a new position of 4.61 million General Motors shares, which amounts to nearly a fourth of the fund’s equity portfolio. Mr. Bass’ rationale lies in the fact that GM is “one of the cheapest companies in the Dow and in the S&P”, trading at an Enterprise Value to expected EBITDA ratio of less than 2.8. The company currently sells at a P/E of 14.5, nearly 15% lower than the average P/E for the Major Auto Manufacturers Industry.

Other funds holding  significant positions in shares of General Motors Company (NYSE:GM) are Warren Buffett‘s Berkshire Hathaway and Natixis Global Asset Management‘s Harris Associates, with respective holdings of 40 million shares worth $1.6 billion and 60 million shares worth $2.46 billion.

The full interview can be watched below:

Kyle Bass is also positive regarding  the prospects of  Nationstar Mortgage Holdings Inc (NYSE:NSM). Recently increasing its holdings of the stock by 338% to 4.76 million shares, Hayman Advisors now holds roughly 5.30% of the company’s stock. During his interview, Mr. Bass told CNBC that he does not think that the letter that the company received from the New-York banking authorities requesting Nationstar’s mortgage practices in 2013 poses any threat to the company.

Mr. Bass also claims ”some of this has to do with political positioning in the state of New York”, and that in fact Nationstar are “the best in the business”, stressing that the hundreds of complaints the company has received in the letter is negligent with respect to the total of 2.3 million mortgage loans that the company services.

Michael Novogratz‘ Fortress Investment Group and William B. Gray‘s Orbis Investment Management are two other large shareholders of Nationstar Mortgage Holdings Inc (NYSE:NSM), with 67.82 million shares worth $2.51 billion and 4.66 million shares worth $172.37 million, respectively.

Check out the video of Mr. Bass discussing Nationstar Mortgage Holdings below:

Disclosure: none

Recommended Reading:

Michael Novogratz’s Fortress Investment Trims Stake in Cardiome Pharma (CRME)

General Motors Company (GM) & AEP Industries (AEPI) Among Daniel Koshaba’s Top Stock Picks

Shah Capital Management Buys 2.0 Mln Shares of UTStarcom Holdings Corp (UTSI)

blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

5 Retirement Mistakes To Avoid (and Einstein’s Famous Quote)

11 Smartest People in the World

6 Films About the Financial World You Need To Watch (While “The Wolf” is Not Around)

Warren Buffett and Billionaires Are Crazy About These 7 Stocks

The Top 10 States With Fastest Internet Speeds

10 Best Places to Visit in USA in August

Top 10 Cities to Visit Before You Die

Top 10 Genetically Modified Food In the US

15 Highest Grossing Movies Opening Weekend

5 Best Poker Books For Beginners

10 Strategies Hedge Funds Use to Make Huge Returns

Top 10 Fast Food Franchises to Buy

10 Best Places to Visit in Canada

Best Summer Jobs for Teachers

10 Youngest Hedge Fund Billionaires

Top 10 One Hit Wonders of the 90s

Fastest Growing Cities In America

Top 10 U.S. Cities for Freelancers

Top 9 Most Popular Free iPhone Apps

Top 10 Least Expensive Private Business Schools in the US

Top 15 Most Expensive Countries in the World – 2014

Top Businesses to Invest In

Top 5 Things You Might Be Doing Wrong With Your Business

Top 5 Strategic Technology Trends in 2014

Top Rags to Riches Stories

Parenting Behavior That Promotes Future Leaders

Top 5 Mistakes Made by Small Businesses

Top 5 Most Common and Potentially Devastating Financial Blunders

Top 5 Highest Paying Jobs for Web Designers

Top 6 Most Respected Professions that Also Pay Well

Top 5 Pitfalls Investors Should Avoid

Top 6 Lawyers and Policy Makers Under 30

Top 6 New Year’s Resolutions for Entrepreneurs

Top 7 Locations to Check in on Facebook

Top 5 Mistakes made by Rookie eBay Sellers

Top 7 eBook Publishers in 2013

Top 6 Health Industry Trends in 2014

5 Lessons for Entrepreneurs from Seth Godin

Top 5 Success Tips from Jordan Belfort – the Wolf of Wall Street

Best Master’s in Finance Degree Programs

Top 6 Earning Celebrities Over 50

The most expensive sports to play

Top 7 Earning Celebrities Under 25

Best 7 Online Courses to Take: Free Finance MOOCs

Top 6 Bad Habits that Promote Failure

20 Most Valuable Soccer Teams in the World in 2013

12 Most Expensive Countries for Foreign Students

Top 30 Most Influential Women in the World

Top 20 Most Expensive New Year Eve Shows

Top 5 Best Vocational Careers

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!