Kyle Bass is a Dallas based fund manager. He founded his own fund, Hayman Capital Management, in 2006. Within two years, Bass became so successful because he was able to correctly predict the financial markets in time. This allowed him to make correct judgment calls that earned him his fortune. In 2008, Bass correctly predicted the subprime mortgage crisis that hit right around the time the United States economy went into recession.
This earned Bass superstar status in the hedge fund management industry. Many observers were of the opinion that he was good at what he did and made all the right calls that have allowed him to pile up a huge fortune for himself and his clients. However, as time went by, Bass begun making bad judgment calls that really cost him his superstar status as well as his profits.
Dismal Hedge Fund Performance
Bass begun a series of bad predictions and investments that has seen his fund performance topple while other funds racked in huge profits. It is reported that as of 2014, Hayman Capital Management lost nearly 30 percent, a mirror opposite of other high performing hedge funds. However, Bass still expresses optimism that the tide will turn around soon.
An Unsavory Alliance
Bass has time and time again supported the economic policies of Argentina’s Christina Fernandez de Kirchner. Despite the leader’s questionable fiscal and economic policies that are seen to have brought the once vibrant economy to its knees, Bass still supports the leader publicly. He has gone further to make several public appearances to defend Kirchner even after her country again defaulted on its debt making it the second default in 13 years. Bass attempted to defend the act by blaming the creditors.
Take on General Motors Fatalities
When General Motors were accused of knowingly releasing vehicles with faulty power steering and non-deploying air bags, Bass defended the company in public so as to secure his investment in the company. This is despite the vehicles causing several fatalities. Instead, Bass attacked the victims, on national television, saying that they were either drunk or failed to use their seatbelts.
Involvement in Pharmaceutical Scheme
A while back, Bass together with Erich Spangenberg devised a scheme that saw them make huge profits at the expense of pharmaceutical companies. They identified certain firms, short sold their stock, challenged some of their patents in a bid to reduce their stock prices and later they made millions in profits. This forced many companies to abandon funding medical research. This action led congress to close the loophole they used to pull of the act.
However, he still continues to make questionable decisions like supporting the Buenos Aires government and investing in oil.