The macro manager, Kyle Bass keeps doing the unusual repeatedly. Kyle Bass, who is not known for investing in equities, has now taken a new position in General Motors Company (NYSE:GM). The hedge fund manager published his thesis on a members-only investor website, Harvest. The other hedge funds that own General Motors Company (NYSE:GM) are David Einhorn’s Greenlight Capital, Taconic Capital and York Capital.

Kyle Bass likes GM’s risk/reward profile

According to the brief presentation, Kyle Bass’ Hayman Capital thinks that the risk-reward profile makes the company a very attractive option to hold among large caps. The fund sees a 48% upside to GM’s current share price, and noted that,

“A strong case can be made that GM should trade at a premium to the group given its unique position and strong underlying fundamentals, a best-in-class leverage to global growth markets, improving operational efficiency from ongoing turnaround efforts and an improving product cadence “

Read interview of Kyle Bass from a new book.

Hayman’s thesis is also based on the positive trends in the auto industry globally, with situation gradually improving in the European region.

Global auto sales

In Kyle Bass’ analysis, there are a number of near term catalysts that can drive up the stock. On of them being the potential exit of the U.S government as a stakeholder, which will remove several operational and technical headwinds. After the government ownership is out of the picture, General Motors can issue a substantial dividend and/or pursue a share buyback program. In Hayman’s estimates, this would stimulate a 38% increase in the share price, considering it trades at a dividend yield comparable to its competitor Ford Motor Company (NYSE:F).

General motors auto sales

Other tailwinds

Other tailwinds that the presentation counts are: the company’s inclusion in the S&P 500 (INDEXSP:.INX), brand new design for its flagship pickup trucks and SUVs and accretion from the retirement of its Class A preferred shares through the end of next year.

Other unusual equity investments that Kyle Bass has taken up recently, include his stake in J.C. Penney Company, Inc. (NYSE:JCP).