Investors appear to regain confidence that the auto industry will recover form its recent slump as the U.S. relinquishes its ownership role. In fact, Hayman Capital Management LP is said to have staken a stake in General Motors Co. (GM).

The Dallas-based fund created by J. Kyle Bass published a presentation on the website HVST.com saying that “Detroit is back. And GM could lead the way forward on the equity front.” The same presentation also stated “GM equity represents one of the most compelling risk/reward situations of any large cap in the world today.”

The presentation notes that Hayman Capital expects the U.S. automaker, the largest one of the nation, to rally by more that 40 percent in value in the next 12 to 18 months. Hayman declined to reveal the size of the investment but its said that it’s the hedge fund’s largest one to date.

According to a government statement last month, the U.S. Treasury expect to sell the 31.1 million GM common shares in its possession by the end of the year. The sale marks a five year point after the bailout of 2008 and the bankruptcy filed the 2009. Bass, has become known for his accurate forecasts of subprime home mortgages before the financial crists, considers the exit of the U.S. a set-off for the stock.