In a very short period Kyle Bass has gone from one of the biggest brands in the hedge fund business to a small controversial investor. His personality is seen by many as robust and bigger than life. In the past eight years Hayman Capital has had a poor run. Many letters to investors acquired by The Post evidently shows Kyle Bass company is struggles.
Bass has on different occasions anticipated some disintegration in the market that has paid off in several occasions including, the 2008 housing crisis, collapse of the Greece economy, and bond buying in Japan. These successes that earned $2 billion might have catapulted him to stardom. In the recent times, however, Kyle Bass has been suffering and there is a decline in his returns.
At one time, Kyle Bass invested in General Motors stocks but the news of the company that the company released vehicles with deadly problems worsened his suffering. Bass did try to save himself by defending GM when he blamed drunk driving but that made the situation worse. Bass placed a bet on the oil prices a few years back but that too failed as the price of oil has been declining over the past few years.
Bass has indeed tried to protect his firm and has not disclosed the company’s performance metrics. The revenues, however, have been on the decline. His setbacks have not been experienced by others in the industry with companies like LTE Hedge Fund going up 34% in 2014.
As ambitious as Bass has been over the years, he has mad mistake that have made many to question his ethics as an investor. He registered Coalition for Affordable Drugs to precisely challenge pharmaceutical patents and as a results, Bass benefited making millions in the process. He did not care about the sick or the research companies that suffered in the process.
Bass remains optimistic, however, hoping that oil and Argentina which are his key bets will bounce back. The two at the moment are considered by many investors as too risky. His mathematical gratitude to precision he claims has made him to conclude that the huge gamble will pay off. Kyle Bass hopes of revival are audacious and he is bullish that he will benefit in a field that others are exiting.