Hedge Fund Manager Kyle Bass Loses in Drug Patent Scheme

Kyle Bass is most known for founding the Dallas-based hedge fund, Hayman Capital Management in 2006. His high level of success came after he correctly predicted the mortgage crisis that took place during the United Stated recession from 2007 to 2009. Bass purchased a generous amount of credit default swaps, which compensated him when a large number of mortgage delinquencies and forclosures took place, resulting in loan defaults. He furthered his media exposure during the European sovereign-debt crisis when he made several predictions as well as elaborated on the future economic outcome in relation to Japan and Argentina.

While Bass’s fortune appeared to happen overnight, recent events have shown an undesireable effect on decisions he has made. His most recent alliance, Cristina Fernandez de Kirchner, has been a source of much debate. His backing behind the women who’s country defaulted on its sovereign debt is viewed as outrageous and irrational. Bass made some striking comments in relation to the New York ruling that Argentina was to pay out creditors who have been victim to the incompetent and corrupt economic illiterate. Bass took sides, calling the judge’s ruling “immoral” and stating that it was “holding poor countries as hostages”.

Although everyone is entitled to their own opinion, many are questioning whether Bass has something to hide with how closely his ties are to Kirchner. Bass also has a running track record of accepting any television exposure he is offered. In relation to his investment in General Motors, Bass shifted blame for the malfunctioning airbags and issues with power steering that caused fatalities. Instead of accepting responsibility that GM was aware of the faulty functions of their vehicles, he placed blame onto the deceased, stating that the fatalities occurred due to alcohol intoxication or the failure to wear seat belts.

But it doesn’t stop there as UsefulStooges.com has been reporting. Bass now has the nickname as a notorious patent troll with his role is short-selling pharmaceutical firm stocks and then challenging their patents. His scheme works by creating environments where the stocks will go down, allowing Bass to make millions while the pharmaceutical companies prices go up. In turn, people who rely on the drugs to treat specific medical problems end up on the back end, thus creating an overall harm to those involved. Bass’s response when questioned about these unethical tactics was that he was doing a noble deed in disarming patents that would make competitors drive the price of medications down. This response didn’t fool anyone who had a hold on Bass’s inept history.

Even with all the evidence against him, Bass came out unscathed when the Patent Trial and Appeal Board (PTAB) dismissed the case against him, stating that challenging a patent with the intention of an economic motive does not raise concern in him abusing the process itself. Furthermore, the board reported that short-selling is legal. The biggest concern is whether the decision made in this case will fuel similar strategies by other investment firms to profit through challenging drug patents.

Brad Reifler Establishes Forefront Income Trust

When it comes time to play the investment game it seems like there are more roadblocks in the way than ever for average investors to build their portfolio. The SEC isn’t malicious but their persistent reliance on accredited investors has made the market almost impossible to crack for the middle and lower income classes in the United States. That is why Brad Reifler, founder and CEO of Forefront Management Group, has decided to change the game by working on it from within. Reifler established the Forefront Income Trust as a response to issues he had seen firsthand from within the market and as close to home as his own family.

In order to get the attention of most investment brokers you need to meet the Securities and Exchange Commission (SEC) definition of what it means to be an accredited investor. Accredited investors are given priority due to their high income and their ability to pull in more cash for brokers. An accredited investor is a person with an income exceeding $200,000 or a joint income that exceeds $300,000 total alongside of a spouse. You can also meet the definition of an accredited investor if you have a net worth of over $1 million. These rules are obviously put in place to appeal to a certain wealthy class as the far majority of people will never feet these rather high limitations. Doesn’t seem fair, does it?

Reifler saw first hand how hard it can be to turn a profit against the SEC’s limitations when his father in law tried to invest his life savings. His father in law wanted Reifler to invest the money in order to get something going for retirement, however the older man did not meet SEC standards as an accredited investor. As a result many doors that would have otherwise been open were immediately slammed shut, thus preventing Reifler from doing as much as possible with the mans money. As a result Reifler began the Forefront Income Trust.

The Forefront Income Trust aims to help those that are in the ‘99%’ get their investments on track. Forefront Income Trust helps those that can meet the low threshold of $2,500 and it works without relying on the stock market, thus creating a more stable investment portfolio. These investments are long term, slow growing accounts that can pay major dividends over the span of years that people leave them there.