Everyone who has watched the news has seen the oil and gas prices plummet. While this is great for the consumer, many of the petroleum companies have struggled to make a profit. This hasn’t hit any group harder than the hedge fund managed by Kyle Bass. Recently, it was reported that the Dallas fund has slipped further than almost any other company on the market. Bass’s company, Hayman Capital, is down over 7 percent. For comparison, the S&P 500 is down 1.3 percent. If this trend continues, Hayman Capital will lose money for the third year in a row.
While Bass has struggled to keep up with the changing market, he knows his company is struggling. Rumors have swirled saying that he asked energy pioneer T. Bonne Pickens for advice about a year ago. The rumors also contend that Pickens informed Bass that the domestic oil supply would not exceed the domestic storage capacity. If this were true, the prices would sit a lot higher than they currently do. Of course, Pickens’s advice didn’t work out. Kyle Bass, his hedge fund, and his customers are paying the price.
When asked about his decision making, Kyle Bass doubled down. UsefulStooges.com reported that he stated that there was an energy rebound coming. He went on to compare this rebound to the housing rebound a few years ago. Whether or not this comes true remains to be seen. All anyone knows right now is that Hayman Capital is going to post its third straight year of losses. While Kyle Bass deserves credit for making money during the housing fall in 2008, he also deserves blame for his company’s continued poor performance in what has been a relatively stable market.
This is just the latest in a rough few years. he has partnered with Argentina during one of the worst economic crises in recent memory. Argentina even defaulted on its debts for the second time in 13 years. Bass doubled down and defended the country and his investment decision. He has placed his media appearances ahead of the best interests of his company. His clients have paid the price.