Pentwater funds reshape Avis Budget (CAR) exposure with major option exercises
Rhea-AI Filing Summary
Pentwater-managed funds reported substantial option exercises and share acquisitions in Avis Budget Group, Inc. (CAR). On March 18–19, funds advised by Pentwater Capital Management LP exercised multiple put option positions on CAR, acquiring blocks of common stock at strike prices of $110, $120, $125 and $130 per share through in-the-money derivative exercises.
The funds also bought 211 call options with an $85 strike at an average price of $24.7626 per option and sold 211 put options with an $85 strike at an average price of $12.3082, both expiring on November 20, 2026.
Following these transactions, entities managed by Pentwater indirectly held 5,437,300 shares of CAR common stock. Pentwater and Matthew Halbower each disclaim beneficial ownership beyond any pecuniary interest.
Positive
- None.
Negative
- None.
Insights
Pentwater funds exercised sizable CAR put positions and increased indirect common share exposure.
The reporting shows funds advised by Pentwater Capital Management LP converting in-the-money put options on AVIS BUDGET GROUP (CAR) into common stock at strikes between $110 and $130. These exercises shift exposure from derivatives into outright share ownership.
Alongside the exercises, the funds bought call options and sold an equal number of put options with an $85 strike expiring on November 20, 2026, creating an additional options position around that level. After all reported moves, the Pentwater-managed entities indirectly hold 5,437,300 CAR shares, indicating a large continuing position.
The Form 4 states that Pentwater and Matthew Halbower each disclaim beneficial ownership beyond any pecuniary interest, so these transactions are best understood as activity in hedge funds they advise rather than personal trading. There is no reference to a Rule 10b5‑1 trading plan in the text provided.
Insider Trade Summary
| Type | Security | Shares | Price | Value |
|---|---|---|---|---|
| Purchase | Call Option (right to buy) | 211 | $24.7626 | $5K |
| Sale | Put Option (obligation to buy) | 211 | $12.3082 | $3K |
| X | Put Option (obligation to buy) | 5,085 | $0.00 | -- |
| X | Put Option (obligation to buy) | 138 | $0.00 | -- |
| X | Put Option (obligation to buy) | 3,717 | $0.00 | -- |
| X | Put Option (obligation to buy) | 1,024 | $0.00 | -- |
| X | Common Stock | 508,500 | $110.00 | $55.94M |
| X | Common Stock | 13,800 | $120.00 | $1.66M |
| X | Common Stock | 371,700 | $125.00 | $46.46M |
| X | Common Stock | 102,400 | $130.00 | $13.31M |
| X | Put Option (obligation to buy) | 41 | $0.00 | -- |
| X | Put Option (obligation to buy) | 324 | $0.00 | -- |
| X | Common Stock, par value $0.01 per share ("Common Stock") | 4,100 | $120.00 | $492K |
| X | Common Stock | 32,400 | $125.00 | $4.05M |
Footnotes (1)
- This Form 4 is filed by Pentwater Capital Management LP ("PCM") and Matthew Halbower ("Mr. Halbower") (collectively, the "Reporting Persons") with respect to securities held by certain funds (the "Pentwater Funds") to which PCM serves as investment adviser. Mr. Halbower is the sole shareholder of MCH PWCM Holdings Inc., the general partner of PCM. Each of the foregoing disclaims beneficial ownership in the securities reported on this Form 4 except to the extent of its or his pecuniary interest, if any, therein, and this report shall not be deemed to be an admission that such Reporting Person is the beneficial owner of such securities for purposes of Section 16 or for any other purpose. Exercisable at any time.
