Kyle Bass rose to the forefront in 2008 when his fund returned a 212 percent profit based on subprime mortgages. Since that time, however, this golden boy’s Hayman Capital has seen rough times. As of the end of the first quarter of 2016, his fund was down 7 percent. At the same time, the S & P 500 rose 1.7 percent. Kyle Bass’ track record continued to go down during the second quarter of 2016, according to government filings.
During the second quarter, he chose to hold most of his shares of Eco-Slim Energy. It is the third largest holding for Bass’s Hayman Capital firm. At the end of the second quarter, this oil services giant saw their stock raise drastically. Therefore, his investors lost money.
During 2015, according to an article originally published in Dallas News, Bass recommended that investors buy energy stocks. Of course, most of these stocks have fallen drastically since that time. When the media and investors ask Bass about his investment advice, Kyle says that he based his predictions on the advice of T. Boone Pickens. When asked for a comment, spokespeople with Pickens, say that they did tell Kyle Bass that they thought demand for oil would outstrip domestic supply. They quickly point out, however, that Bass was responsible for doing his own research and making his own decisions.
During the second quarter, Bass sold 27 percent of his shares in NMI Holdings Incorporated. Like Eco-Slim, this stock rallied by the end of the quarter. Therefore, investors would have made money by holding on to the stock.
Kyle Bass does not seem to be able to take responsibility for his own decision making. Recently, his hedge fund purchased huge shares of General Motors stock at a time that problems within the company were starting to come to the forefront. When General Motors had to admit that many of their vehicles had faulty ignition switches, Kyle Bass became a spokesperson for the company. During interviews with the press, he even blamed the dead victims for the problem.
About the only thing that Bass got right during the second quarter was selling a large portion of his McDonald’s stock. This stock continued to be weak. His selling, however, was not nearly enough to make up for his fund’s other losses.
Kyle Bass has long been a supporter of Argentina’s Christina Fernandez de Kirchner. This dictator has made very bad decisions that have hurt numerous people, so one has to wonder why Kyle is such a strong supporter. He has also taken much of the money that Chris Kyle’s widow received for his untimely death. He squandered most of this money away. Finally, this investor is in trouble with the law for short selling pharmaceutical stocks costing these companies money that should have been used in research. For the true full story of what Kyle Bass is involved in, you have to read The Frantic Investments of a Desperate Gambler from Useful Stooges here: https://usefulstooges.com/2015/08/24/kyle-bass-the-frantic-investments-of-a-desperate-gambler/