By Patrick Dunuwila via StockTwits Blog
Legendary hedge fund manager Kyle Bass gained notoriety for accurately predicting and profiting from the 2008 financial crisis. Bass was early to notice a bubble forming in subprime mortgages and in 2007 began purchasing credit default swaps on subprime residential mortgage backed securities. When the housing market finally collapsed Bass made hundreds of millions of dollars from his position. Our partners at Real Vision TV recently sat down with Bass for an interview. Here are some powerful insights from his talk.
1.) “There’s no true science to it, it’s an Art”
This was Bass’ response when being asked about his procedure on finding trade ideas. What he meant by this was that as an experienced investor he’s able to successfully rely on his intuition when scoping out opportunities. Through years of practice and dedication he’
found his own style and method. There isn’t an exact formula behind it, either. Instead, he’s an artist carefully and creatively scanning the world for investment ideas.
2.) He has an incredibly high level of conviction with his trades
Once Bass has established a thesis on a particular trade, he has complete confidence in it. It no longer matters what other people think. For example, before the housing market collapsed there were plenty of market professionals that told him he was crazy. Continue reading