People that follow the high-profile people in the investment market are very familiar with the name Kyle Bass. Bass is the boy wonder that predicted the fall of the subprime mortgage industry in 2008. He also predicted that Greece would default on its debt. Kyle Bass made a fortune on both of those bets. But the last two years have not been as fruitful. His partners in the Hayman Advisors hedge fund haven’t been thrilled over the returns Bass has produced recently. But Kyle keeps talking, and the press keeps writing about his predictions. One of his 2016 predictions is, the energy sector is the place to make big money over the next three to five years. Bass wasn’t sure what segment of the energy sector was best. When he was asked whether pipelines, infrastructure, or the producers were going to pay off equally over that time frame, he didn’t have an exact answer. But he did say all of those areas have cap structures where money can be placed and get substantial returns.
Bass does have the money, mind, and mouth to make people listen to him as UsefulStooges dutifully points out. But his advice isn’t always good advice. He won a spot at the top of the investment industry in 2008, but some people in the industry think he has abused that spot. What most people know now is, Kyle Bass is for Bass moneymaking, and that may come at the expense of others. Bass proved that when he sided with General Motors over the faulty steering mechanism disaster. Hayman Advisors, the Bass hedge fund, was GM’s largest stockholder at the time. Kyle gave more proof when Argentina defaulted on their debt bonds and left four hedge funds holding South American worthless paper. Bass had no business talking about the situation, but he did. He sided with Argentina and against his investment colleagues.
The list of inappropriate decisions made by Bass keeps growing. He is betting against drug companies using questionable and privileged information, and he is betting against China, and the Chinese government isn’t happy with him. Bass is a ticking bomb that could go off at any time, and no one is sure how much more damage he will cause.