How to Maintain or Stabilize Company's Demand and Lead the Equity - Article Example

Hayman Capital Management LP stakes to invest in the Detroit-based General Motors. As the United States chills out from its ownership role, General Motors should be leading the auto industry in 2014. Hayman Capital shows high confidence in General Motor’s equity that Bass considers as the most forceful risk/reward situation of any large-cap in the world. The Hayman Capital Management decided to bet on GM positing that based on its conjectures, the world’s largest automaker should increase in value between 12 and 18 months, and this increase is projected to be at 40%.

General Motor’s stock gained a 34% increase this year, surpassing the 26% increase by the Standard & Poor’s 500 Index. Following the sales drop in 2009, the company’s demand has recovered, which was followed by a federal judge decided that General Motors is eligible for bankruptcy protection from creditors to be paid $18 billion. Bass looks towards a positive outlook of GM in 2014 considering that back in 2012, GM was trading in $5.5 billion worth of shares, showing that the company’s shares in the automaker industry are steadily rising.