Category Archives: Leading a Corporation

Predictions of Doom By Kyle Bass A Bust

Posted on 30 March, 2016 in Leading a Corporation

Kyle Bass, the founder and key executive of the hedge fund Hayman Capital Management has filed an inter partes review petition on behalf of his group the Coalition for Affordable Drugs. This review is challenging a patent covering a multiple sclerosis drug Tecfidera dimethyl fumarate issued by Biogen Inc. Mr. Bass apparently formed his Coalition, or CFAD, as a front organization for challenging pharmaceutical patents. He has filed multiple petitions claiming his goal was to encourage competition in the manufacturing of pharmaceuticals to help bring down their prices to the general public This statement, however, was later confirmed not to be true when Bass finally openly admitted that his main motive for challenging the patents of so many companies was to simply make a profit by shorting their stocks.

Things turned worse for Bass when he challenged the Celgene Corporation in 2015. In that year, he filed a suit and the reply by the Celgene corporation was devastating. In their answer from the Patent and Trademark Office, Celgene received permission to file a motion seeking damages against Kyle Bass and the Coalition for Affordable Drugs for abusing the patent review process for their own enrichment. As of last October Bass and his, Coalition had filed 33 petitions for inter partes reviews. Some of these petitions were actually multiple causes for the same patent. 10 of the petitions were denied outright.

Kyle Bass is the primary officer and creator of Hayman Capital Management L.P. a Dallas, Texas Hedge Fund. Bass succeeded early in his career by predicting and profiting from the subprime mortgage scandal that rocked the financial world in 2008. However since that success the years have not been kind to Bass and his company. After the subprime crisis hit in 2008 Kyle Bass determined that it was just a symptom of a much more significant worldwide debt problem and not just confined to the United States.  In 2012 his doomsday prediction was that the Eurozone would completely break apart leading up to a collapse of the Japanese economy and that in the United States If that weren’t bad enough in 2014 he went on to predict that the following few years would be full of turmoil and upheaval that would include armed regional conflicts and even wars.

For several years now he has been predicting financial doom for Japan describing the Japanese economy as a giant Ponzi scheme ready to collapse and destroy its citizens. However, most financial experts totally disagree with his assessment and dismiss his doom and gloom predictions as a total failure in his understanding of sovereign debt and currency supply.

In addition to his dismal prediction record his hedge fund hasn’t fared any better. In 2007, Hayman Capital earned 212% shorting subprime mortgages. In the next 8 years, the fund averaged just 1.56% annualized returns. Full story available on