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.