Kyle Bass’ Hayman Capital filed 13f for 1Q2014 today. The market value of Hayman’s long equity holdings rose 35% to $1 billion at end of the quarter. Kyle Bass is more famous for his macro investments, however, lately he has been pitching some equity ideas.
Kyle Bass bought Herbalife once again
Hayman Capital once again bought Herbalife Ltd. (NYSE:HLF) in the last quarter. The hedge fund had exited the position at the end of 2013 and now reporta a position of 318k shares. Other companies that Kyle Bass invested in – a 2 million position in Verizon Communications Inc. (NYSE:VZ), 2.7 million shares of Energy XXI (Bermuda) Limited (NASDAQ:EXXI), 754k shares of American Airlines Group Inc (NASDAQ:AAL) and 1 million shares of Digital Realty Trust, Inc. (NYSE:DLR).
General Motors and Nationstar, top two positions
Kyle Bass was buying more General Motors Company (NYSE:GM) stocks in the last quarter. Hayman added 2.45 million shares of General Motors, taking his ownership to over 7 million shares. General Motors’ recent slump has been a cause of distress to several hedge funds, including Greenlight Capital, York Capital, Jana Partners and Glenview Capital. Kyle Bass said in an interview last month that General Motors will be out of trouble in six months and the stock would bounce back.
Kyle Bass increased his position in Nationstar Mortgage Holdings Inc (NYSE:NSM) three fold. Hayman now controls 5.3% of the mortgage company; Kyle Bass believes that non-banker mortgage servicers like Nationstar have a big competitive advantage since they fewer customer complaints per delinquent loan than competitors. Nationstar has invested in building its infrastructure and hiring staff, which Bass believes will soon be very profitable.
Kyle Bass sales
Hayman Capital sold out of NRG Energy Inc (NYSE:NRG) and Altisource Residential Corp (NYSE:RESI) in Q1.
At the end of the quarter, the hedge fund’s largest equity positions were in General Motors, Nationstar Mortgage Holdings, Verizon Communications Inc. (NYSE:VZ), Vodafone Group Plc (NASDAQ:VOD) (LON:VOD) and Kinder Morgan Inc (NYSE:KMI).