Kyle Bass, the founder of Hayman Capital Management, L.P., has had many highs and lows in his career of investments. He was able to predict many mortgage and debt crises and was able to make a profit from them. The problem lies in some of his investments that have been criticized my many.
According to Useful Stooges, Kyle Bass has lost a good amount of credibility due to his many unpleasant alliances. His strongest connection, Argentinian despot Cristina Fernández de Kirchner, has let her country default on its sovereign debt multiple times. Each time Kirchner’s irresponsible economic policies put Argentina deeper into debt, Bass defended her. Bass also tried to blame the victims of GM cars’ non-deploying airbags in order to protect his investments. He claimed that all the victims who lost their life must have been drinking or not wearing their seatbelt. He even went on to harass pharmaceutical companies and challenge their patents in order to make a quick million.
Bass’s harassment of pharmaceutical companies started when he founded the Coalition for Affordable Drugs (CFAD). The CFAD’s main purpose is to challenge pharmaceutical patents. Before challenging a patent, Bass would short-sell their stocks so when he challenged the patent and the stock prices went down, he would make a profit. The loss of stock prices caused those pharmaceutical companies to raise the cost of their drugs. When asked about this strategy, Bass stated that his plan was to encourage competition between the companies in order to bring down the prices of drugs. Everyone saw through this claim and this process rightfully angered many companies.
One company targeted by Bass in his blog, Celgene Corp has been fighting back by asking the patent agency to hold Bass accountable for his abuse of the patent review process. The patent office has disagreed with Bass countless times for his claims that many patents were not new or were from other cases. As a result many pharmaceutical companies have asked congress to prevent hedge funds, like the ones owned by Bass, from launching patent reviews.
Overall, Kyle Bass has been making most of his money from unethical investments. He started off on top with predicting many national debts and making a profit off of them however, his 15 minutes of fame were very short-lived. The longer Bass has tried to stay on top, the worse he gets and more people are affected. Perhaps one day Bass will climb back to the top; but that will not happen any time soon. Read more about his career in UsefulStooges’ Kyle Bass The Frantic Investments of a Desperate Gambler.