Hedge Fund Makes Avis Budget to Increase 8%A $9.2 billion hedge fund founded in 2000 Glenview Capital Management boosted Avis Budget Group Inc. by over 8 percent after news broke that hedge fund.
They had purchased 5.12% stake, or 5.4 million shares, in the rental car company. Avis Budget also saw a bump due to another announcement from rival rental car company, Hertz Global Holdings (NYSE:HTZ), which said they will be looking to raise their prices.
The rental car industry has been attracting a lot of activist attention lately, particularly at Hertz Global Holdings, Inc. Jana Partners announced 7% stake in the company in the months prior and even Carl Icahn has made an impact by getting Hertz CEO to step down, in favor of a candidate that could implement his action plan. Hertz is down -14.5% year to date, showing that there still is more time needed to implement and achieve results from Jana Partners and Icahn's activism.Source: Seeking Alpha