Kyle Bass a $2 billion hedge fund manager, rips John Paulson and Seth Klarman. Bass, correctly predicted the subprime debt crisis. Additionally , Bass has thinks Japan and Greece are "doomed" due to the high level of debt relative to GDP.
He thinks the little guys are getting ripped off at the expense of large hedge fund managers like Paulson and Klarman. As I reported yesterday on Guru Focus in an article titled John Paulson is No One Hit Wonder; John Paulson stands to make a killing of Lehman Brothers bonds, which he bought at an average price of 13 cents on the dollar.
Bass in a recent shareholder letter, stated (h/t to Business Insider)
These elite hedge funds [Baupost and Paulson] appear to have a very cozy relationship with the restructuring advisor in this case [the case of Lehman]. They have no doubt worked together in the past and have expectations to work together in the future. We can only speculate as to why they believe they are entitled to bend and possibly break the long established expectation of seniority that comes with purchasing senior bonds.
Below is the video: