The election process has taken another turn in 2016. Established politicians are feeling the pressure of the public that believes they are wasting money, time, and ruining the good name of the country. But investors like hedge fund manager Kyle Bass know the presidential election is more about show than change. Bass knows the government is broken, and he does his best to take advantage of that fact. Kyle Bass started his investment firm, Hayman Capital, in 2006. Bass is an ex-Bear Stearns executive that saw the folly in the subprime mortgage scheme. Bass tried to warn his Wall Street buddies that the end was near in 2006, but they didn’t listen to him. In 2008, Bass made a fortune because he bet the subprime scheme was going to implode. Hayman Capital became an overnight success story, and Bass was named an investment genius.
Fast forward eight years, and Bass is still acting like the genius he thought he was in his glory days. But Bass has thrown a lot of mud in the investment water since then. Kyle has had his fair share of wins over the past eight years, but his reputation has taken some serious hits, and that trend seems to be continuing. BusinessInsider.com published an article about Bass recently. In that article, Bass talked about current events and he gave his opinion about Hillary Clinton and Donald Trump. He also gave a synopsis of the China economic situation and banking issues that will lead to the devaluation of the yuan. Bass is betting that China will be forced to devalue their currency because of capital reserve expenditures. Bass also talked about taxes, the Federal Reserve and his part in the 2008 financial meltdown.
But even though some of Kyle’s thoughts had credence, his recent decisions about shorting drug stocks to make a profit using inside information, and his defense of General Motors during the steering mechanism debacle, has seriously damaged his credibility in the industry. American Sniper Chris Kyle’s widow has accused Hayman Capital of unethical behavior, and many people believe her. Bass is walking on shaky ground, but to him, it’s just another day in the sketchy world of hedge fund investing.