An Amibitious Couple's Blog Experiment

A Supposed Genius Who Went Wrong

Back in 2008, Kyle Bass was considered to be a genius. The man predicted the 2008 subprime mortgage crisis and became a star. This hedge fund manager, it seemed, couldn’t go wrong.

But as time went on, Bass kept on making some bad investment calls. In fact, as Bass’s media appearances increased, his investment performance went down.

When under Cristina Fernández de Kirchner Argentina defaulted on its sovereign debt, Bass kept on praising her and eccentrically rationalized her misguided economic policies. This led to a question: Is Mr. Bass a capitalist hedge fund manager or a socialist left-winger? BBC claimed the praise came from Bass’s mouth because the man himself has a good relationship with the Argentinian president.

When Paul Singer of Elliot Management insisted on full payment on defaulted Argentinian debt, Bass went on to call him an immoral man who holds poor countries as hostages.

That wasn’t the last of outrageous statements made by Mr. Bass who went on to blame the dead passengers when GM cars had major issues with non-deploying airbags and faulty power steering, all while holding GM as an investment. Bass’s claim was that these victims either had to be drunk or didn’t wear seatbelts.

With the assistance of Erich Spangenberg, Bass started short-selling some pharmaceutical stocks and then challenged their patents, seeking to profit from a decline in prices as a result. Will that also affect the desperate patients waiting for a cure? Eventually, it came to a point where a government agency, the Patent Trial and Appeals Board, is looking to sanction Bass for his abuse of patent challenging in search of profits.

The supposed genius of 2008 seems not to be doing well as a fund manager as outlined by Kyle Bass: The frantic investments of a desperate gambler. Some news sources estimate that Bass lost 30% in 2014. As of late, he’s been looking into oil and Argentina as potential places to invest. With the lack of performance and previous scheming history, Bass’s reputation as a market guru no longer holds.

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