Funds Sell Delphi, Price Moves

Auto parts maker Delphi Automotive became a distressed trade for certain hedge funds when it went bankrupt several years ago. It emerged streamlined from bankruptcy and in November had an initial public offering. Some of the large investors have been liquidating their remaining Delphi positions.

Among these are funds managed by Paulson & Co. and Elliott Associates. Last week various Paulson and Elliott vehicles sold Delphi at around $32 a share. The IPO price was $22.

Today Delphi announced an increase in profit and a better earnings outlook. But the stock went down by 4% to a little over $30.  Selling by funds and other investors may be pulling down the shares. Paulson and Elliott each owned more than 10% of the company, even after earlier bouts of selling.

Elliott Associates, founded by Paul Singer in 1977, is one of the largest event-driven managers.

Paulson funds had heavy losses last year. But the Delphi trade appears to be a winner.


Tags: , , , ,

Leave a Reply

Please log in using one of these methods to post your comment: Logo

You are commenting using your account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

%d bloggers like this: