Kyle Bass' Hayman Capital Changes Many Holdings: GM, Verizon, NRG, AMR and More

Investing

Published: May 15, 2014 2:13 pm

Last Updated: May 16, 2014 6:37 am

Kyle Bass of Hayman Capital Management has been busy in the first-quarter portfolio changes. The value of stocks held as of March 31 was $1.042 billion. The group’s 13F filing three months ago showed that Bass’s year-end holdings were $774.7 million. Investors need to keep in mind that the hedge fund listed only 26 issuers, so seven big changes in a quarter is some real turnover.

Perhaps the biggest change was in General Motors Co. (NYSE: GM). The holdings at the end of 2013 were listed as warrants for shares, but Bass added 32,000 more call options and also had just over 7.086 million shares. At the end of the first quarter, the GM position was worth some $243.9 million. GM shares were valued at $34.42 each on March 31, and despite more news of recalls and negative public relations, the stock is trading at about $34.10 on May 15.

Kinder Morgan Inc. (NYSE: KMI) was dumped, but more so in the form of warrants than the number of shares. His warrants for 7 million shares expiring in 2017 did not appear in the new holdings, and the number of shares went from 2.353 million shares held at the end of 2013 up to 2.646 million shares at the end of the first quarter.

The position in Nationstar Mortgage Holdings Inc. (NYSE: NSM) has risen handily since the end of 2013. That was listed as 4,829,825 shares worth some $156.77 million as of the end of the first quarter, versus 1,085,638 shares worth some $40.125 million at the end of 2013.

Verizon Communications Inc. (NYSE: VZ) was listed as a new position of 2,052,863 shares, worth more than $97 million at the end of the first quarter.

NRG Energy Inc. (NYSE: NRG) was dumped entirely during the first quarter, down from a stake of 2.97 million shares worth more than $85 million as of the end of 2013.

New positions were taken in American Airlines Group Inc. (NASDAQ: AAL) and in American Eagle Outfitters Inc. (NYSE: AEO) as well, but these were worth only $27.59 million and $31.78 million, respectively, at the end of the quarter.

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