Kyle Bass, Investment Professional
Investment professional Kyle Bass has an eccentric history as an investor, with a backlog of investment strategies that have gone either extremely well or terribly, terribly wrong.
Bass is well known in investment circles for his prediction, back before 2008, of the looming real estate bubble burst that would wreak serious havoc on the US economy. Bass founded his Dallas, Texas based fund, Hayman Capital Management, in 2006, and his prescient prediction of the subprime mortgage crisis lead many to think he knew absolutely everything about everything, real estate investment-wise.
As time went on, however, it became increasingly clear that while Bass was certainly right about the coming economic meltdown in 2008, he was very wrong in a lot of his investment strategies. As we well know now, being wrong in this industry can be very expensive in a multitude of ways.
Due to Bass’s notoriety early on with his dead on prediction, he became a popular guest on financially oriented news shows, which love to have experts on to give their take on current trends. It’s been noted, however, that Bass often goes on these shows to make pronouncements that seem to do more to serve his own bottom line than the public good. Given the other activities this once well regarded investor has been involved in, none of this should be very surprising.
KEEPING UNSAVORY COMPANY
One of the most glaring issues in Bass’s recent career moves has been his willingness to become professionally involved with people whose reputations should send out huge warning signals. One of these folks is Argentianian political leader Cristina Fernández de Kirchner. Though Argentinia defaulted on its debt for the second time in a thirteen year period, Bass is on the record as vigorously defending her. Given the very dark side of what is going on with finances in Buenos Aires, many wonder why Bass is willing to associate himself with de Kirchner and her team of defaulting henchmen. Is there some very shady dealing going on between them financially? All signs do seem to point to “Yes.”
Bass has had other lapses in judgement, beyond his involvement in the Argentinian economy. After investing in General Motors, he went on the record defending the company even after it was being investigated for very shady practices as far as safety goes. He actually tried to blame the victims of car accidents stemming from problems with GM cars (non-functioning air bags and faulty power steering), and did it all with a straight face.
The list of questionable practices by Bass goes on and on, leading many to wonder why any legit business would be involved with him. Any ideas?