I missed it earlier this week, but Kyle Bass of Hayman Capital put out his most recent letter to investors. The pdf (courtesy of Zero Hedge) is here. Bass made $500 million betting against subprime in 2007, so his opinions are worth careful consideration.
While most stories about the letter focus on the its last page, where Bass notes his “mortgage position” now accounts for nearly 50% of assets under management, some of the most interesting reading is earlier in the letter. Bass is clearly in the hyperinflationary camp, seeing paper currencies as highly risky what with governments worldwide financing huge deficits with the printing press.
Lots more in the letter.
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He started with something like $36M which made his profits all that more remarkable.
The letter is a must read and i wish it was condensed to a 10 minute TV ad so the mainstream sheeple could see what is going on in the country.
- Posted by TraderMarkI bet I know a WSJ online article you’ll link to today…
or at least you will if you’ve read it.
- Posted by AndrewI don’t quite understand why he’d want to be holding 50% mortgage paper if he’s in the hyperinflation camp, and thinks high inflation and interest rates are coming in under 18 months.
- Posted by MarkI always believe that in financial sectors, there is a phrase called regression to the mean. So what if they had earned 500 million? Sooner or later they will average out.
- Posted by Lim Boon Chuan[...] given that Hayman reportedly was betting big iagainst subprime mortgage derivatives, and given that the value of such [...]
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