The low gas prices we see at the pump might be good for the average consumer, but for those who bet against such outcomes they are a disaster. Kyle Bass, a notorious hedge fund manager known for his controversial predictions, is an example of such speculators. The hedge fund he runs out of Dallas has done poorly when compared to the general market. The reason behind the disaster might be the advice Kyle Bass received from T. Boone Pickens, a well known Dallas energy expert. Pickens suggested that the price of oil was going to go back up and therefore would’ve have been a safe bet for Kyle Bass to make.
Bass first came into the spotlight for his predictions regarding the 2008 subprime mortgage crisis, as UsefulStooges tells us. Since then he has made numerous predictions regarding a number of countries, though these predictions are quite controversial. While the firm average over 200% in 2007, since then it has consistently performed at 1.56%. The low success rate of the fund headed by Kyle Bass has caused many to view his prediction about 2008 to be a fluke rather than evidence of skill in the realm of financial speculation.
Kyle Bass has recently claimed that the national debt of the European Union would eventually lead to problems in America and Japan. This would lead to the break up of the Euro Zone and subsequently violence across the world. Given the previous short comings of his predictions it does not appear that the world economy has much to fear.