The Indefensible Kyle Bass

When you want an investment professional, you seek knowledge, professionalism, strategy, and a long track record of success. None of these things describe Kyle Bass. Bass, the founder of Hayman Capital Management, garnered success with his investment choices prior to the recent great recession. Most, if not all of his choices since, have been described as desperate gambles. In addition, the lack of ethics that Kyle Bass consistently displays is truly appalling.

Mr. Bass aligns himself with people who make horrific financial choices such as the infamous Cristina Kirchner who has twice supported defaults of Argentina’s sovereign debt. Bass’ response was to sing her praises and remain in unflappable support of her which makes more than a few suspicious of his reasons for his support of someone who appears to be fairly financially illiterate and out of touch with the true needs of her fellow Argentinians.

When his investments in GM were at risk, he chose to blame the innocent, injured, and dead victims rather than take the blows or at least find a remotely ethical response. Speaking of ethics, Bass will win no awards for having any. Bass created and followed through on a plan that has prompted Congress furiously re-write laws to prevent him and others from profiting off of shorting drug companies’ stocks to make money, which lessens the companies’ motivation for research. This can put some patients in a difficult spot at best and extend pain, suffering, or cause death in some cases.

Being the investment “professional” that he is, Kyle Bass has incorrectly claimed for several years straight that the economy of Japan will crash. Hopefully you have no investments with his company because if you do, it has been estimated that his funds have lost approximately 30% in stark contrast to the absolute best hedge fund investment professionals. A person does not have to be one of the most experienced investors to know that they can invest their money in more fruitful places or do their investing solo.

No matter how Kyle Bass spins it, the reason behind his lack of ethics is simply money. Having lost his Midas touch, likely never to regain it, he is very likely looking for a new scheme that will bring in money.

Bruce Levenson sells Hawks for less than expected, but still a profit.

Reported on time.com, Atlanta Hawks co-owner Bruce Levenson had high aspirations to sell his team for a hefty $1 billion back in the beginning of the year. His choice was on the higher range of predictions, but many credible sources had similar forecasts. Including banks such as Goldman Sachs and entities such as Inner Circle Sports who were given the responsibility of the sale, but the joke was on them. The final price of sale was $850 million to billionaire equity and investment fund manager Anthony Ressler. Other members of Russler’s group are Clayton Dubilier & Rice partner Rick Schnall, Spanx owner Sara Blakely and her husband, entrepreneur Jesse Itzler. Ressler had plans to buy the LA Clippers last year but was out bid by Steve Ballmer’s $2 Billion offer.

Fortunately, Ballmer’s astronomical price worked out well for the Hawk’s. Last year Forbes had them valued at $425 million, but the sale of the Clippers and the Bucks displayed a change in the market completely.

Bruce’s high price does not go unwarranted due to the Hawk’s regular season record and first place standings going into the playoffs. Although, a few other problems plagued the team’s value, such as a gym that ranked below NBA standards and a practice facility that could potentially deter free agents.

Despite the Hawk’s selling below Levenson’s asking price, sports attorney Irwin Raij says this is a strong number. “The price reflects the strength of the NBA product right now and views as to what they think the market can become,” he said. “This takes into account the national and local media deals and the trend of increasing NBA team valuations. … This price for this team in this market will be viewed positively.”

Levenson and others purchased the Hawks, the NHL’s Atlanta Thrashers and operating rights to Phillip Arena for $250 million back in 2004. They sold the Thrashers back in 2011 for $170 million.

Bruce Levenson is a business man and former NBA owner and a philanthropist. Born in Chevy Chase, Maryland and a law school graduate from American University in Washington, D.C. Levenson also served as governor to the Atlanta Hawk’s on the NBA’s governor board since 2004. Levenson also founded United Communications Group back in 1977 and is on the board of directors for Tech Target, a media company.