Opposition trader Kyle Bass
When studying success stories on the stock exchange, one constant axiom can be noticed, which is that in most cases the successes were achieved by those who bought undervalued shares and then controlled their price.
The growth of the economies of the United States and Europe allowed many traders to earn fabulous sums by doing practically nothing, but only holding shares of promising enterprises.
Today this approach is a dead end, but at the same time the bears began to reach the podium.
Opposition trader Kyle Bass is a great example of a modern bull who has achieved his success by shorting and betting the market.
Kyle Bass was born on September 7, 1969 in Miami, Florida. His family had a good income, since his father was the manager of a large hotel, Fontable.
Study and career advancement
After graduating from high school, Kyle Bass received a scholarship to attend Texas Christian University.
The young man was a very diligent student and had great potential, so in 1992, Kyle Bass received a bachelor's degree with honors in financial administration.
After graduating from university, Kyle Bass never sat idle and immediately got a job as an analyst at the investment company Prudential Securities in 1992.
This company allowed him to become a stronghold and gain experience, so after two years in 1994, Kyle Bass left the company and got a new, more profitable position at Bear Stearns.
Working in a new place allowed Kyle to fully realize his potential, so he moved up the career ladder very quickly in this company.
At just 28 years old, he was practically at the top, serving as the firm's chief executive officer and the youngest leader in its history.
In 2001, Kyle Bass was lured by Legg Mason to manage and organize their Texas branch.
When Kyle signed his contract with the company, he made it clear to management that he would leave the company in exactly five years and one day and start his own company. Naturally, management greeted this announcement with a smile, and the contract was signed for exactly five years.
When his contract expired, Kyle Bass left the firm and started his own fund, Hayman Capital Management.
Fund Development: The Deals That Brought Kyle Bass Fame
At the time of the foundation's creation, Kyle had a net worth of $5 million, with the remaining $28 million coming from investors. Kyle conducted research comparing the difficulty of obtaining a mortgage in the US and other European countries.
It turns out that a kind of mortgage bubble has formed in the United States, as analysis has confirmed that loans were available to practically insolvent citizens.
Realizing that the inflated bubble could soon burst, Kyle Bass began actively playing against the government by selling securities related to mortgage loans, which allowed him to earn millions of dollars.
After his success during the US mortgage crisis, Bass clearly understood that the cause of such crises was the huge external and internal public debt.
Using the same model, he predicted a series of defaults in many countries, and also began actively trading against the Japanese yen, Greece and a number of European countries, claiming that a collapse could soon occur, which, in fact, began to come true after the UK's exit.
Along with positive deals, Kyle Bass has also encountered negative moments along the way. In 2014, for example, Bass's fund became the largest investor in General Motors, acquiring over 8 million shares.
However, a major scandal soon followed regarding the poor safety of cars produced by this company, which caused a sharp drop in the share price.
To date, Kyle Bass's fund has returned 436 percent, with annual returns never falling below 16 percent.
