The Mistakes Made by Kyle Bass in His Career

Kyle Bass is an entrepreneur and hedge fund manager who is famously known for predicting the 2008 subprime mortgage crisis. The prediction bought him instant fame and people assumed that he was an economic and investment maverick. His Dallas based firm has made a lot of revenue and gained international recognition in the past years.

Ever since the prediction of the mortgage crisis, Bass has been unlucky in every business call he has made. It is unfortunate that being a public figure has made him a target of his own bad business decisions. He has made alliances that continue to reflect badly on him. His alliance with Argentinean despot Cristina Fernandez de Kirchner has been stated as the worst thing to have ever happened to Argentina’s economy. Recently, Argentina defaulted on the sovereign debt for the second time in a period of 13 years and Bass was quick to defend the country’s actions.
Perhaps the worst business call that Kyle Bass has made is going on air to defend General motors’ after the auto firm failed to correct car irregularities that contributed to the wrongful death of a number of people. Kyle shifted the blame to the dead victims. He claimed that that the victims were responsible for their own deaths because they failed to follow safety standards instead they failed to use seat belts besides driving under the influence of alcohol. Such accusations did not go down well with the public.

Bass is said to have collided with Erich Spangenberg to create a scheme that is hindering the funding of medical research. Bass selects a pharmaceutical firm and short sells their stocks, later he disputes their copy rights using the Coalition for Affordable Drugs and the stocks go down. When such short selling happens, Bass makes a couple of million while the price of the pharmaceutical companies goes up and the funding for medical research goes down. The public media have accused him of using unscrupulous methods to make quick cash. His behavior has been termed to be outside the ethical standards, thus people doubting his abilities.

Kyle Bass was born on the 7th of September 1969 in Miami, Florida. His family moved to Dallas, Texas and Bass joined the Texas Christian University where he pursued his undergraduate degree in Business Administration in Finance and Real Estate Finance. He briefly worked for Prudential Securities before moving to Bear Stearns. At Bear Stearns he rendered his services as the senior Managing Director before moving on to Legg Mason where he still held the same position of Managing Director. In December 2005, Bass left Legg Mason and formed Hayman Capital Management. At Hayman Capital Management, he became popular after he correctly forecasted the real estate mortgage crisis.

Leave a Reply