Kyle Bass Rips John Paulson and Seth Klarman

May 13, 2011

famous hedge fund manager kyle bass 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.

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4 Responses to Kyle Bass Rips John Paulson and Seth Klarman

Stanley on May 17, 2011 at 8:13 am

Seems to me like a person who perfects the buy low, sell high approach.

and may have had randomness favoring him a few times as well in recent times.
Carl on May 15, 2011 at 5:14 pm

Bass does have a point here. The little guys always get screwed. Btw, did Bass loss weight ?
Anonymous on May 13, 2011 at 8:31 pm

Kinda seems like he’s whining, I mean, if he’s running $2mm he aint exactly a little guy, not by any definition of the term ever used in the history of language…

That being said, is it any surprise the biggest funds get the best deals? Is this news or something?
- Jacob Wolinsky on May 15, 2011 at 4:23 pm
  
  Btw it is $2B, and your right he aint a small guy by any means.
  
  Of course the big guys get the best deals, but unless you are an activist investor, it much easier to get good returns with 100k than with 20 billion. Klarman is returning money to shareholders now, and Buffett has stated that returns on Berkshire’s investment portfolio will not be as good in the future.
  
  I think Bass did lose weight. I barely recognized him.