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Which Mutual Funds Bought GM?

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Investors interested in owning a piece of General Motors may have to wait a bit longer before finding out which mutual funds have exposure to the newly traded stock.

Todd Rosenbluth, a mutual fund analyst for S&P Equity Research, said in a phone interview that few funds focus only on the IPO market, but noted that this is an unusual offering with appeal for diversification in large cap funds.

"The challenge," he said, "is we don't know who has allocations yet." It will become clearer when funds release their top 10 holdings in early December.

"I wouldn't be surprised if Fidelity, Vanguard or American Funds have exposure to shares," he added.

The Direxion Long/Short Global IPO Fund is one fund that does focus on the IPO market. It is participating in the GM offering, a release from the company announced Thursday.

Following its initial public offering of $20 billion, General Motors' (GM) stock increased 9.1% Thursday, Bloomberg reports. The stock reached a high of $35.99 per share before closing the day at $34.19, a 3.6% increase.

General Motors announced Wednesday that it would issue 478 million shares of common stock, or $15.77 billion, and 87 million shares of mandatory convertible junior preferred stock, or $4.35 billion. The underwriters may purchase an additional 71.7 million shares of common stock for a total offering of $23.1 billion.

The common stock was initially priced at $33 per share. Stock began trading Thursday under the ticker symbol GM on the New York Stock Exchange, and the symbol GMM on the Toronto Stock Exchange.

Underwriters include Morgan Stanley, JP Morgan and Goldman Sachs. Bloomberg reports that SAIC Motor Corp., GM's partner in Shanghai, China, bought a nearly 1% stake in the IPO.

The Department of Treasury agreed to sell over 358 million shares as part of the IPO. After the offering, Treasury will own 36.9% of outstanding shares.

"GM's initial public offering is an important step in the turnaround of the company and for our work to recover taxpayer dollars and exit this investment as soon as practicable," Treasury Secretary Timothy Geithner said in a statement Wednesday. 

"It is now widely recognized that the taxpayers' investment not only helped save jobs during the worst economic crisis in a generation but also gave the auto industry a solid foundation on which to build," he added.


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