Kyle Bass is an American hedge fund manager and the founder of Hayman Capitals Management; L.P. He is the principal of the Dallas-based firm which primary focus is global event-driven opportunities. Kyle Bass successfully predicted a bet against the US subprime mortgage crisis in 2008. He had bought the subprime securities credit defaults swaps and after the real estate bubble had burst he made a 212% return on the bet. Bass has also made other bets in recent times including the Japan, China, and the European sovereign debt. Without a doubt, he has had success in predicting subprime mortgages but has also had plenty of criticism for poor performance in some of his investments.
Many people who understand the financial world will tell you that Kyle Bass has lost his magic touch. Many believe that Bass is making bad call after bad call. He does seem to like being in the public eye as he is always doing interviews on different televisions. In the case of Argentina, every financial expert will tell you that Cristina Fernandez is economically illiterate. The country’s economy has suffered a lot from her bad decisions. This, however, did not stop Kyle Bass from making friends with Cristina. Worse he never stopped praising the woman despite leading her country to default on the sovereign debt for the second time.
Ethically, Kyle Bass has lapsed several times not just in the case of Argentina. At one point he blamed the victims of the GM cars that had non-deploying airbags and faulty power steering just to protect his investments on General Motors. Bass also targeted some pharmaceutical firms and challenged their patents to make their stocks go down and in turn made millions.
The recent oil Glut of crude oil has seen Bass go through the worst streak since he founded Hayman Capital. Mr. Bass in 2015 begun buying oil shares after it was reported by investor T. Boone Pickens that the country would be able to handle the oil glut. The energy prices in the recent days have dropped immensely, and Bass is suffering. Hayman mini fund in 2016 fell by about 7%. Consequently, the company will be ending another year in losses.