Hedge Fund Investor Kyle Bass Thinks The U.S. Economy Might Be In Recession Mode By The End Of 2016
Kyle Bass, the former Wall Street executive, turned financial prophet never misses an opportunity to talk about investing and any other topic that is brought up by the media. Bass is known for his unusual style and his provocative relationships with foreign heads of state and unsavory investment partners. Bass and his hedge fund firm, Hayman Capital, have made an extraordinary amount of money over the last eight years, but it seems the money tree may not be bearing as much fruit as it did eight years ago.
Bass made a name for himself in the investment industry when he accurately predicted the implosion of the subprime mortgage game. Bass, left his position at Bear Stearns in 2006 and started Hayman Capital in order to bet against the company he worked for as well as for the industry that made him. Bass made a fortune when the market crashed in 2008, and his investment firm became the talk of the industry. Bass liked the attention, and he became one of the men in the hedge fund industry that people wanted to follow. But Bass is not the type of guy that plays by the book, according to some of those followers.
Bass found himself on the hot seat when he back Argentina’s former President Cristina Fernández de Kirchner when she defaulted on $95 billion in bonds. Several hedge funds were caught in that debacle and rather than siding with Paul Singer and other hedge fund managers, Bass took de Kirchner’s side.
The list of Bass blunders keeps growing. Chris Kyle’s widow is claiming Hayman Capital is unethical, and that notion is filtering around the pharmaceutical industry as well. Bass is shorting drug stocks before the news that they are being investigated for overcharging the public for certain medications. Kyle’s friend Erich Spangenberg is the guy that brings up the charges and Bass acts when he gets a signal from Spangenberg. Ethics seems to be a vacillating term with Bass these days, but he is still talking, and some folks are still listening.