Kyle Bass founded the hedge fund Hayman Capital in Dallas, Texas with $10 million personal savings capital in 2005. The fund is a global special situation fund. Before that Kyle Bass worked at Legg Mason as well as Bear Stearns where, at age 28, he was promoted to a Senior Managing Director, one of the youngest in the bank’s history. “Capitalism without Bankruptcy is like Christianity without Hell” – Kyle Bass.
– Bass: “I’d Much Rather Own Gold Than Paper”
– Short the Yen. Target 160-200
– Short China through Australia & Brazil
– Long Assets such as YPF in Argentina
last updated December 2014
Hayman Capital Management Lp Portfolio Holdings
|Previous Mkt Value:||$989,672,000|
|Chg Mkt Value %:||-67.16%|
|Top 10 Holdings %:||99.99%|
13F Report Date: 12/31/2014
|RANK||TICKER / SECURITY||TICKER||VALUE (X1000)||SHARES||% PORT||% PREV||% AUM||% CHG||CHG SHARES||CHG||SECTOR NAME||SECTOR WEIGHT|
|RANK||TICKER / SECURITY||TICKER||VALUE (X1000)||SHARES||% PORT||% PREV||% AUM||% CHG||CHG SHARES||CHG||SECTOR NAME||SECTOR WEIGHT|
|1||NMIH - NMI HLDGS INC||NMIH||37,457||4,915,657||59.14||23.19||1.62||-7.47||-396,995||Down||FINANCE||0.59|
|2||SHPG - SHIRE PLC (PUT)||SHPG||21,325||110,000||33.67||0.00||0.92||110,000||New||HEALTH CARE||0.34|
|3||ESES - ECO STIM ENERGY SOLUTIONS IN||ESES||4,558||2,130,000||7.20||4.92||0.20||0.00||0||No Chg||OTHER||0.07|
|4||MCD - MCDONALDS CORP (PUT)||MCD||0||0||0.00||71.89||0.00||-100.00||-750,000||Sold All|
HAYMAN CAPITAL MANAGEMENT Sector Weightings & New Holdings
|Top 5 New Buys|
|Ocwen Finl Corp||15.16%|
|Vodaphone Group Plc New (Call)||5.26%|
|Kapstone Paper And Packaging||5.09%|
|Occidental Pete Corp Del||0.62%|
|13F Sector Allocation|
Hayman Capital Management Lp 13F Holdings Kyle Bass’s Hayman Capital Management Lp just filed its quarterly 13F. Dated 22/12/2015, the filing shows the hedge fund has a portfolio value of…
Kyle Bass, the founder and manager of Hayman Capital and the man who spotted and shorted successfully the subprime bubble was interviewed today at CNBC. He shared during the “Squawk…
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Have you ever read John Steinbeck’s Of Mice and Men? It’s part of the high school curriculum in many western countries. The story is of two lonely and alienated farm…
Kyle Bass Shares His Trading Views One of the actions that took centre stage in 2015 has been going short on the EUR/USD currency mostly because the ECB is implementing strongly…
13F Portfolio Holdings
|Kyle Bass Personal|
|Wealth: Hayman Capital, Self Made|
|Education: Bachelor degree of BA in Finance and Real Estate Finance from Texas Christian University|
|Experience: 22+ years|
Kyle Bass was born 1960 in USA. He graduated with a Bachelor degree of BA in Finance and Real Estate Finance from Texas Christian University in May 1992. He attended TCU on a Division I scholarship for academic achievement and diving. Kyle Bass career started in September 1992 at Prudential Securities where Kyle was on top in his nationwide training group as a retail securities broker. After he left Prudential Securities, Mr. Bass joined Bear Stearns, where he worked for 6 years. He became one of the youngest senior managing directors in the bank’s history. Before forming his own hedge fund, Kyle worked at Bear, Stearns for six years where, at age 28, he was promoted to Senior Managing Director, one of the youngest in the bank’s history. In Bear Stearns he advised hedge funds on investment strategies. In 2001 after leaving Bear, Stearns & Co., Kyle started work at Legg Mason, Inc. where he served as a Managing Director for 4 years before leaving to found Hayman Capital and Hayman Advisors. Mr. Bass founded hedge fund Hayman Capital in Dallas with $10 million personal savings capital, Texas, in 2006. The fund was set up as a “global special situation fund”.
Today, Kyle Bass is the managing director and principal of Hayman Advisors LP’s, general partnership which was formed in December 2005. Hayman Advisors LP serves as the investment manager to the Hayman Capital Master Fund LP; Hayman Advisors is also a member of Hayman Municipal Strategies LLC and Hayman Woods LLC. Kyle Bass is also a mortgage credit portfolio advisor to few asset management companies and manages or advises over $4 billion of investments in the residential mortgage-backed securities market. Mr. Bass is also a Director of the Asset Backed Securities at Credit Derivatives Users Association. He is also a member of the Serengeti Asset Management Advisory Board and is a member of the endowment’s board of the University of Texas Investment Management Co which bought $1 billion Gold bars in 2011 because Mr. Bass told them to do so.
Kyle Bass Age – 54 Years old Career Duration and Experience – 22 Years Current Service – Hayman Capital Management, Hayman Capital Partners, Hayman Advisors LP, Credit Derivatives Users Association, Serengeti Asset Management, University of Texas Investment Management Co. His hedge fund was founded in 2006 and currently has $700+ million assets under management. Even though Kyle Bass net worth is unknown to the public, we believe it is more than $100 million USD+. Investment Principles – Find Asymmetry Situations, Invests Mainly Based on Macro Views, Invests in Special Situations
– Since 2006 and March 2009, Hayman Capital returned +340%+ net of all fees and expenses while the S&P 500 has returned -42.3%. The fund’s annual return was 85% for the 3 year period mentioned. – Kyle Bass testified before the House of Representatives Financial Services Capital Markets Subcommittee as an expert witness on the state of the credit market. – Profited $590 million by selling short the sub-prime mortgage bond market via CDOs in advance of the market collapse. – Predicted the rise of Precious Metals from 2009. – He is popular not only because he made millions betting against the sub-prime mortgage bond market, but because he also predicted and – and now he’s betting on the collapse of whole countries in Europe. He is known for his pessimistic views on the global economy and for accurate bets on different asset classes. Not only predicted back in 2009 that Greece will default – restructure but also got it right that it must wipe out more than 70% of its debt. Much higher than IMF, ECB and EU economists and analysts predicted. – Kyle was also featured in Michael Lewis’ book Boomerang: Travels in the New Third World as one of the fifteen hedge fund managers to have rightly called the collapse of the US sub-prime mortgage market and profited from it.
In 2002 Kyle Bass drove a $200,000 Porsche from Manhattan to LA in the Gumball 3000 rally. Drivers ignored speed limits and using a helicopter spotter, he won the race’s “Hottest Wheels” award for reaching the super-high 208 mph speed.
Below you can find insight info on how he got the housing bubble trade right. After researching several months, Kyle Bass his colleagues and employees did found out which Collateralized debt obligations were based on super-low grade mortgages. In the beginning of mid-2006, Mr. Bass by using leverage sold short $4 billion USD of subprime securities to the synthetic Collateralized Debt Obligations (CDO) market. During 2007 and especially at the end of the year, a mass of foreclosures hit the USA, and Kyle as reported on Bloomberg “made a killing by his bet”. Hayman Capital used about $110 million ($10 million of his own capital and $100 clients’ capital) and by using leverage placed a $750 million USD bet. Kyle Bass is one of the not many hedge fund managers who detected the housing bubble and not only protected his clients’ funds but even increased their wealth. Right after the correct bet on the housing bubble crash, Kyle’s attention shifted to countries with huge debt problems and his main focus continues to be on countries with a high ratio of government debt/ government revenue. According to him challenging times lie ahead for the world’s second-largest economy – Japan. Bass, who made successful bets against subprime mortgages and financial companies in recent years, now focuses on countries and anticipates a cluster of sovereign defaults soon. Kyle believes that the next in line is Japan, and his concern is that Japanese government borrowing will continue to climb while demand for the nation’s debt will decrease. The result in his opinion is a collapse of the Japanese government-bond market and a devaluation of the yen.
Hayman Capital Management was established in 2006 by Kyle Bass. The fund is located in Dallas, Texas, has $750+ million assets under management and is managed by Hayman Advisors. The fund offers asset management for institutional clients (including companies, endowments, foundations and pension companies), family offices, funds of hedge funds and (HNWI) high-net-worth individuals. The minimum amount that Hayman Capital requires clients to invest with the main fund is $5 million USD. This is the minimum to start an investment with their main Hayman Capital Master Fund. Hayman Capital also offers a special fund set up to bet for the coming Japan’s debt crisis called Japan Macro Opportunities Fund.
|HAYMAN CAPITAL MANAGEMENT LP|
|2101 CEDAR SPRINGS ROAD SUITE 1400|
|DALLAS TX 75201 USA|
|Business Phone: 214-347-8050|
1. Boomerang: Travels in the New Third World by Michael Lewis This is a wonderful book written by Michael Lewis that uses the people’s characters as a tool to explain the cause for wrong conceptions, development of bubbles, crashes and pain. As an example, the author explains how Icelanders’ fisherman became investment bankers in no time and ruined its country. This book also provides information on what might happen in future to economies of Japan, Europe, USA, UK and why all countries face gigantic financial problems that will cause social unrest and unthinkable alterations.
2. All the Devils Are Here: The Hidden History of the Financial Crisis by Bethany McLean & Joe Nocera As soon as the financial crisis hit, the question that arisen was who to blame for it. Did Wall Street cause it? Main Street? Or maybe the greedy Investors, lazy regulators, hoggish subprime companies, timorous legislators or optimistic home buyers? According to the authors the guilty of the crisis are all of the above and even more. Many devils helped bring hell to the economy. This book demonstrates that the crisis wasn’t about finance at all but about human nature.
3. The Black Swan of Cairo: How Suppressing Volatility Makes the World Less Predictable and More Dangerous written by Nassim Nicholas Taleb & Mark Blyth.
4. This Time Is Different: Eight Centuries of Financial Folly written by Carmen M. Reinhart & Kenneth Rogoff Reinhart and Rogoff created a striking database covering 900 years of government defaults on debt obligations. In this book they reveal the connection between capital-outflows and banking crises as well as the cycles of debt crises. This long historical paper provides a panoramic view of the infinite cycle of rise and collapse of economies. This shows that claims such as ‘this time is different’ are always wrong. . . . This Time Is Different not explain what went wrong in our most recent crisis but it also arms us with a roadmap on how things are likely to play out in the near future.
5. “The Budget and Economic Outlook: Fiscal Years 2011 to 2021” CBO, the Congress of the USA, January 2011.
6. “CBO’s 2011 Long-Term Budget Outlook” CBO, the Congress of the USA, June 2011.
7. “The Budget and Economic Outlook: An Update” CBO, the Congress of the USA, August 2011.
Kyle Bass often refers to information from the IMF Global Financial Stability Report, CBO Cover to Cover, Moody Investor Service Country Credit Statistical Handbook. It seems that these reports could provide interesting information and we recommend investors take a look at these reports.
Below are provided the shareholder and other letters of Kyle Bass’s Hayman Capital. Please keep in mind that some hedge funds do not provide quarterly reports but only annual. On this page you can also find other reports, writings related to Kyle Bass and Hayman Capital as well.
February 2014 Letter – In this letter, Kyle Bass presents Hayman Capital global outlook and opportunities for 2014. He discussed USA, oil, Japan, Japan debt crisis, quantitative easing, Emerging markets like Turkey and Brazil , tapering as well as better fundamentals for Argentina.
December 2011 Letter – In this letter, Kyle Bass discusses the hidden bank run that is happening in the PIIGS. According to him there is no reason for PIIGS citizens and companies to keep their cash in their local banks when they can move them easily to more stable countries with less risky banks. He also points out to a report which shows that high capital mobility leads to a banking crisis. Probably that is what he expects.
November 2011 Letter – In this letter, Kyle Bass talks about the global sovereign debt issues and the coming sovereign defaults and restructurings. He also supports his previous theses that Japan will face a debt crisis by providing additional information and supporting materials.
Feb 2011 Letter – This letter is about variety of topics like Zero-interest rate policy, Deficit Spending Issues, Japan and the coming X-day, the European debt crisis as well as overall thoughts about sovereign debt challenges.
October 2009 Letter – In this letter, Kyle Bass addresses some key topics such as: areas of opportunities for good investments, the implications of the US and global monetary policies, the housing market in U.S., possible slowdown of China and debt crisis in Japan. He shares how his fund is positioned as well.
March 2009 Letter – This insightful letter is about the global debt problems, the credit crisis and industrial production declines as well as the 38 years fiat currencies experiment, which Kyle Bass believes will not end well. He recommends gold as a way to protect from the coming fiat currencies debasement.
October 2008 Letter – This writing more about the coming crisis and deflation and how Kyle Bass’s Hayman Capital is positioned for the big bust. According to the letter his fund is heavily short equities, has its long position hedged and holds USD, as he expects the currency to be the best in times of turmoil.
July 2007 Letter – This is the entire subprime letter where Kyle warned about the housing bubble, many fraudulent schemes and risks. It also reveals information on the position of his fund and his views about the future.
Hayman Capital Management Lp is a Texas-based hedge fund that was founded by Kyle Bass. It had more than $2.32 billion assets under management in May, 2014. This fund invests only a small percentage of its assets in equities and options. Taken from Hayman Capital Management latest Adv, the fund reported to have 24 full and part-time employees. Among which 10 performing investment advisory and research functions. The hedge fund had between 11-25 clients. Founding Hayman Advisors in 2004, Kyle Bass – holder of a BA degree from Texas Christian University managed to gain popularity since his bets against the subprime market. His fund managed to return about 20.3% in the year 2006 and by 2007, it’s able to hit 216.6% in its returns. By 2008, his hedge fund obtained 6.1% that later on increased to 9% in 2009. Before founding his own hedge fund, Kyle Bass had a career with Bear Stearns and Legg Mason.
HAYMAN CAPITAL MANAGEMENT AUM, Portfolio Value and Historical 13F
$408,048,000 in 2013Q3 – 13F Filing Available
$774,724,000 in 2013Q4 – 13F Filing Available
$1,042,519,000 in 2014Q1 – 13F Filing Available
$732,409,000 in 2014Q2 – 13F Filing Available
$989,672,000 in 2014Q3 – 13F Filing Available
$325,011,000 in 2014Q4 – 13F Filing Available
*Institutional Portfolio Holdings information is filed by institutions with over $100 million in AUM on form 13F with the SEC.
*% AUM is the stock or security value as a percentage of the assets under management. AUM is taken from the latest fund filed SEC Adv.
*The portfolio holdings report is limited to stocks and stock options of common and other shares, convertible preferred and convertible bonds. The report does not include cash, real estate and fixed income securities.
*Sentiment could be wrong because the fund might have increase or decrease its portfolio because of investments inflow or because an increase in short positions.
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