(Bloomberg) – Hedge Fund SRS Investment Management achieved a gain of nearly $ 5 billion in just a few hours on Tuesday when the shares of Avis Budget Group Inc. skyrocketed in the recent madness of meme stocks.
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SRS, led by Karthik Sarma, is the largest shareholder in the car rental company and has owned its shares for more than a decade. It holds shares and swaps, representing 43% of the shares in Avis, shows a statutory application.
Shares of Avis doubled to $ 340 at. 13.51 in New York and previously rose as high as $ 545.11, after CEO Joe Ferraro said the company in Parsippany, New Jersey will play a major role in the increased use of electric vehicles.
Read more: Avis triples in Meme Moment about plans to add more electric cars
Sarma, 46, and SRS President Jagdeep Pahwa, 47, are members of Avis’ board.
Sarma opened his equity-focused hedge fund in 2006 after spending five years at Chase Coleman’s Tiger Global Management, where he was CEO, according to his LinkedIn profile.
The SRS managed $ 8.65 billion, including leverage, at the end of last year, according to its latest regulatory application.
David Zales, the New York-based firm’s attorney general, declined to comment.
(Updates to Tiger Global in the fifth episode.)
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