As Kyle Bass’ media appearances have gone up, his hedge funds seem to be in decline. It’s an interesting phenomenon, but not one without a cause. That cause is probably ulterior motive, but it’s difficult to say.
Here are the facts. Kyle Bass exploded onto the economic scene in 2008 when he made a prediction that dropped jaws worldwide. Bass was able to foresee the US housing market’s collapse based on banks’ lending practices. Really, this should have been obvious to many people, and it may be that the awe of the public surrounding Bass represented their way of defraying personal guilt on an obvious blunder. Whatever the case, the world began to pay attention to Bass, who now had a fortune and was certainly intent on increasing it.
Bass continued to branch out. He started an organization called the Coalition For Affordable Drugs, or CAD. CAD used their influence to decrease the cost of big-ticket pharmaceuticals’ drugs such that their stock dropped. Kyle Bass then short sold the stock he had with those now-diminished pharmaceutical companies, making a great deal of money in the process. This kind of activity is the same often associated with economic hit-men. Which begs the question: what kind of economic motivations drive Bass? Well, looking at his roots it seems as though Argentinian socialism may have a hand in the affair.
While the hedge fund Bass manages is based out of Texas, Bass himself comes from Argentina, and has close ties with the country’s president, Cristina Fernandez de Kirchner. Cristina is a socialist, and she’s tanking Argentina’s economy. Yet Bass seems to worship the ground she walks on. It seems as though the two have ulterior motives. It seems as though Bass may have a concerted interest in profiting from the decline of big economic powers.
CAD and 2008’s sub-prime lending crisis aren’t the only items Bass has set his sights on. He also believes China is on the verge of economic collapse, he successfully predicted economic difficulties in Japan which resulted in the government meting out stimulus packages, and he’s had some noteworthy opinions about Europe’s economic decline for a while now. Bass seems to know when things are going to collapse, and he’s a foreign transplant from a country with a socialist leader. Most are aware the global socialist putsch is worldwide revolution, so the question again becomes: is it possible that Bass has ulterior motives?
This would seem to be the case, though it’s nothing that can be said definitively; however the 30% loss experienced by Kyle Bass’ managed funds in 2014 seems awfully indicative. When the best managers had increased by the same margin that year, it seems suspicious that Bass wouldn’t at the very least be in the mid-range. 1% profit is better than 30% loss.