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.