Hedge Fund at Center of Avis Squeeze Added to Stake Before Rout

Avis Budget Group Inc.’s second-biggest shareholder Pentwater Capital Management LP boosted its stake in the car rental company just before the stock’s nearly 70% rout.

Pentwater exercised about 7,400 call options, which give the buyer the right to buy the underlying security, acquiring 741,100 shares in Avis and pushing their stake in the company to 22.2%, according to a regulatory filingBloomberg Terminal released late Thursday.