Hedge Fund Manager Kyle Bass Loses Magic Touch and Public Trust

Hedge fund manager and CEO of Dallas-based Heyman Capital Management, Kyle Bass, is waging a war against pharmaceutical companies he claims abuses patent system. Bass and his colleague Erich Spangenberg, co-founder of the Coalition for Affordable Drugs, believe that certain pharma companies are doing their best to drive up drug cost in an effort to keep their massive profits rolling in.

Bass and Spngenberg have filed nearly three dozen patent review requests against 13 companies. The part that is raising eybrows is the fact that the duo are short-selling the stock of vulnerable companies while investing in the ones they feel have the most promise. Naturally, the Big Pharma companies view this as a massive conflict of interest. Pharmaceutical companies are accusing the coalition of profiteering. Meanwhile, the patent appeal board is siding with the coalition citing profit as the center of every patent.

The New York Times has written about how Bass got his start and made his first fortune in the hedge fund industry. Heyman Capital Management made him a boatload of money after he successfully predicted the 2008 banking crisis. While Bass has had some legitimate success, he has also made some serious strike outs. Many feel that Bass has rode the carcass off that dead horse and hasn’t had much to offer since.

While Bass — and a few others in the financial realm — view him as a genius, some look at him as little more than an opportunist. While Bass’s media appearances have hit an all-time high, his market picks have continue to plummet. Bass’s unsavory alliances haven’t helped matters. His partnership of sorts with Argentinian leader Cristina Fernandez de Kirchner and Spangenberg is not helping his stock-picking powers.

Bass’s patent challenges are looked at as an abuse of power. Hopefully, he will learn that not all money is good money. Most observers feel that Bass should be avoided like the plague unless you are ready to lose your shirt.

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