Currently, Kyle Bass is seeking for investors who are ready to bet on the losses being made by the Chinese banking industry. This comes only a couple of months after the hedge fund manager predicted massive losses in the industry due to huge non-performing loans. If everything goes as he predicts, both Bass and his investors will get millions of dollars in returns.
Kyle Bass made a name for himself about nine years ago when he successfully predicted the subprime mortgage crisis in the United States. The financial problems caused by the crisis led to the great recession of 2008 that affected the United States and other countries whose economies were tied to that of the U.S. Bass was able to take advantage of the situation and make millions of dollars for himself and investors that had trusted in him. Since then, he has made numerous economic predictions. Some of them have been accurate while majority have been wrong. The wrong predictions have reduced investors’ confidence in him.
According to an unnamed source, Bass has started holding calls with investors. He is using the calls to explain his ideas to the investors and try to convince them to invest in the upcoming opportunity through his company, Hayman Capital Management. The unnamed source also pointed out the hedge fund manager’s confidence in the Chinese economy. Over the last few months, Bass has been able to switch his focus to the east. Currently, over 85% of his main fund’s portfolio is in trades with China. This information was originally mentioned on Dallas News as provided in the link below http://www.dallasnews.com/business/headlines/20160425-kyle-bass-seeking-investors-to-bet-on-china-banking-losses.ece
Early this year, Kyle Bass made a bold statement on China’s banking system. According to him, the industry was going to suffer massive losses that are almost four times those suffered by U.S. banks during the 2008 recession. However, Chinese analysts have disregarded his predictions. The experts predict the losses to be only 7% of the country’s GDP.
Other American financial experts have considered Kyle Bass a desperate gambler. They highlight the continuous drop in his fund’s performance over the years, regardless of the numerous predictions and media appearances he has been making in the recent past. They have also accused him of unethical trading practices such as shorting companies to make profits. This information was originally published on Useful Stooges as explained in the following link https://usefulstooges.com/2015/08/24/kyle-bass-the-frantic-investments-of-a-desperate-gambler/