Every new month presents a new downturn in Kyle Bass’ career. The man who has made a name for himself for being the go-to hedge funder for the Argentine upper class dreads each new day. Looking back to 2006 when he started Hayman Capital, a Dallas based hedge fund, he had the hallmarks of a lucky gambler and a successful player in the financial markets.
UsefulStooges was one of the first to show Bass amassed a fortune in 2008 when he correctly predicted that there would be a crisis in the subprime mortgage industry. This thrust him into the limelight from oblivion and announced his boisterous debut on the financial markets. Many experts concluded that the Dallas native was an industry maverick with a Midas touch.
The Luckless Streak
Those who were skeptical about Bass’ rise to the top had their worst fears confirmed when his streak of good fortune went on a downward spiral. We embarked on a spree of making bad predictions, which has stuck since then. The touch of gold he once has was replaced by inauspiciousness. Even more surprisingly, he does this in the public domain. His quest for publicity has seen him accept all media interviews, through which he gives his analyses. These often turn out later to haunt him.
Kyle not only makes bad calls on CNBC but also forges seedy partnerships. Whereas it is common knowledge that economically ignorant Argentinian autocrat Cristina Fernandez de Kirchner has caused a slump in her country’s economy, Bass has relentlessly pursued an economic alliance with her. He sings praises about her reformative policies whenever he gets a chance. When Argentina under her leadership ducked on its sovereign bond for the second time in thirteen years, Bass stood by the dictator.
Previously, such a failure to pay debts was seen as an illogical and unfortified act. Bass however managed to rationalize it. While doing this, he advanced baseless arguments, which seemed so out of touch that people started drawing comparisons between him and Argentina’s leftist Minister for Economy, Axel Kicillof. Bass has been consistent in defending the nation’s negligent economic strategies. By doing this, he has turned a blind eye on the daylight fraud that has become prevalent in the vast South American country, which was once affluent.
Questions still abound as to why such a brilliant mind would support detrimental economic policies.