The financial crisis rocked the country to the core. Millions of people lost their jobs and millions of families lost their homes and retirement. Today, the economy is in better shape, but the recession was caused by people that cared more about their short-term gains than the health of the global economy. Many of these people are now banned from participating in the financial industry, but other risky investors have risen up to take their place. Kyle Bass is one name that people should remember as his risky approach to investing will one day leave his supporters in dire straits.
Kyle Bass was once an unknown name in the financial sector, but in 2006, he made a bold prediction. Kyle looked at the various subprime mortgages and other debt obligations and predicted that we would soon see an economic crash. He performed multiple interviews and spread his bold prediction. Kyle was right, in 2008 a dramatic economic crash arrived. This collapse made him incredibly popular in the financial sphere and his mutual fund, Hayman Capital Managment became incredibly popular. Unfortunately, it seems that Kyle did not take in the lessons from this crisis.
Since 2008, Zero Hedge exposes that Kyle has made numerous bad calls, and because of his constant public appearances these missteps are in public view. The more public appearances Kyle makes, the worse his fund performs. In 2014, the fund dropped by 30% and in just the first quarter of 2015, the fund dropped by 2%. Clearly, Kyle’s financial advice paid off in 2008, but his performance in the last 8 years has not held up.
Kyle has had a tough run as a fund manager, but his public life has not helped his reputation. Kyle has enjoyed his life in the public view, and his investors should be watching. He has formed an alliance with Argentina’s current leader while everyone else in the industry has avoided her at all costs. Many believe that Bass is being paid off by the Argentinian government to give the government great coverage. Investors should note his willingness to drop his integrity and steer clear of Kyle Bass.
Your money is an important part of your life, and you owe it to yourself to avoid shady dealers. While Kyle has had some success in the past, his current track record is not helping his investor.