Why Avis Budget Lost a $70 Million Backer Even as Shares Rallied 34% in One Year

Company Overview - Avis Budget Group, Inc. is a leading provider of vehicle rental and mobility solutions, operating a diverse portfolio of brands across over 10,000 locations worldwide [6] - The company leverages its scale, technology, and brand differentiation to address the needs of both commercial and consumer markets [6] - Revenue for the trailing twelve months (TTM) is reported at $11.4 billion, with a net income of -$2.1 billion [4] Recent Developments - Maple Rock Capital Partners sold its entire position in Avis Budget Group, reducing its holdings by 415,584 shares valued at $70.3 million during the third quarter [1][2] - Despite the sale, Avis Budget Group showed solid operational momentum in the third quarter, with revenue of $3.5 billion (up 1% year-over-year) and adjusted EBITDA of $559 million (up 11%) [7][10] Market Performance - As of the latest market close, shares of Avis Budget Group were priced at $133.93, reflecting a 34% increase over the past year, outperforming the S&P 500's 13% gain in the same period [3][4] - The decision by Maple Rock to exit its position highlights the potential divergence between company fundamentals and investor sentiment in the travel-related industry [10] Operational Insights - Avis Budget Group's Americas business saw adjusted EBITDA improve to $398 million, supported by lower per-unit fleet costs despite softer revenue per day [9] - International profitability also strengthened, with adjusted EBITDA rising to $190 million due to better pricing and cost efficiency [9]