Hedge fund managers have been taking a lot of heat for under performing in 2015. Large pension funds are moving their assets to other investments because of the high fees that hedge funds charge and the low returns that are becoming the norm. Kyle Bass is the founder of Dallas-based Hayman Capital Management. Bass is one of those edgy hedge fund managers that takes risks and expects big rewards. Bass expects those rewards because he has an investment track record filled with financial wins. He even won when the rest of the world lost everything but the shirts on their backs in 2008. That’s right. Bass was one of the Wall Street boys that bet the market was going to implode because of the sub-prime mortgage debacle. Bass was an executive at Bear Stearns at that time, and he saw the signs that other Wall Street money men ignored.
Bass was recently interviewed by BusinessInsider.com and he had a lot to say about investing, China, and politics. Mr. Bass is a loyal Clinton supporter so it wasn’t a surprise when Bass said Donald Trump was not fit to be president. Bass told the interviewer that Clinton knows what the country needs. Other people say Clinton is a Wall Street supporter than will protect guys like Bass that walk in between the ethical lines in order to make billions of dollars. When the China situation was brought up in the interview, Bass said China does have major economic hurdles to overcome, and he is betting the Chinese yuan will have to be devalued in 2016 because of those issues. The main issue, according to Mr. Bass, is China’s dwindling capital reserves. In 2015, the Chinese spent billions of dollars in capital reserves to support their stock market as well as keep the value of the yuan stable.
Even though Kyle Bass has had his fair share of successful investments, he has also been criticized for some of his business practices. His relationship with the man they call the “most notorious patent troll on the planet” is under investigation, and his outspoken stand with General Motors during the airbag and power steering mess left a bad taste in many people’s mouths. UsefulStooges has written about Kyle Bass extensively, and it’s definitely worth a read.