Kyle Bass Bets Against Big Pharm

Kyle Bass is a 55-year old hedge fund owner, manager, and investor that is best known for being the principal founder of Hayman Capital Management, a hedge fund based in Dallas, TX. Bass and his fund have a very diversified set of investments and are considered to be well informed as to what is going on in the market and global economy, which has allowed them to make smart investment decisions.

Bass gained national attention in 2008 when he was one of the first to correctly predict the collapse of the U.S. economy. Bass reportedly purchased much different credit default swaps, which essentially bet against subprime mortgages. His timing of this investment strategy was excellent as the economy took a turn for the worse within just a few months of his investments taking place. This strategy allowed his fund to make a considerable amount of money, which led to a 212% return on investment in 2007.

Bass has also spoken publicly, and accurately predicted, many of the international economic challenges. Most notably, he made several predictions about the credit crisis affecting Europe. He made several predictions that Greece and other nations in Europe would struggle to pay back their debt.

Bass has also made public allegations against various pharmaceutical companies that attempt to control medication through the filing of frivolous patents. In August 2015, he established a group known as the Coalition for Affordable Drugs, which had the intent of having some patents given to pharmacy companies thrown out. His intent was to ensure that the companies would no longer have an exclusive of the drugs, which would then allow for more open competition and ultimately lead to the reduction in prices.

Bass and his newly formed coalition filed several individual complaints and petitions to have patents thrown out. While the end result is still forthcoming, there is a good chance that at least some of the patents will be eliminated. Historically, over 50% of patents that are petitioned in this manner are ultimately thrown out by the court.

Banking Trends

Investment banking is undergoing an intense transformation in the wake of the financial crisis and the imposition of new rules under Sarbanes Oxley. In particular, the Volker rule which prohibits banks from using their own balance sheets to warehouse trades has changed the focus and profitability of banks dramatically. Today they are more focused on advisory and wealth management.

For that reason Martin Lustgarten has thrived in his investment banking career. The Florida resident is president of his own investment banking firm. The company focuses on providing strategic advisory service based on his many years of experience. Mr. Lustgarten is able to provide advice and analysis from working with many large, fast growing companies.

In addition, his extraordinary Rolodex of contacts allows him to match his clients with the right partners. Whether it is investors or other businesses, Martin Lustgarten can provide the key introduction to make the deal happen. He has particularly good contacts in the growth sector.

Martin Lustgarten also has great knowledge of different types of investing and can direct his clients to prudent investment opportunities. He can help his clients diversify or get into risky high-growth private investments depending on the investor and their willingness for risk. In either case, he will help the client to achieve the outcome that they desire. He also has an impressive social media following, including a Vimeo account.