Texan hedge fund manager Kyle Bass is speaking on a panel at The Economist’s Buttonwood Gathering at the Time Warner Center in Manhattan.
He’s on a three-person panel.
We’re going to update this post live with his comments. Be sure to refresh this page for updates.
So far, the conversation has focused on central bank policy and the outlook for 2015.
Bass was asked about currencies. He’s a macro event-driven fund manager.
“The Fed is backed into a corner,” he says. He thinks the Federal Reserve will have to raise rates in June.
The moderator asked Bass if we can stay in this low interest rate environment.
“Here, we believe the skilled workers in the US are fully employed,” he said, adding that he thinks we’ll see wage growth.
He said that Quantitative Easing has widened the income gap in the US.
“I make this point frequently. I think the unintended consequence of [Quantitative Easing] has been in the widening income gap,” Bass said.
This, he explained, has benefitted the rich.
“How many rich people are poorer today than they were in ’08? I don’t know any.”
He continued:”…I think once you enter this kind of policy you must stick with it. I think the next recession will be a tougher one because you’ll have fewer tools to revert the outcome.”
We’re still hoping they will ask him about his new “activist short strategy.” Bass recently revealed that taking on the US pharmaceutical industry and their patents.
Earlier today, the Hayman Capital founder filed his first inter partes review (IPR) petition with the US Patent and Trademark Office challenging Acorda Therapeutics’ patent of its flagship drug Ampyra — a treatment that helps improve walking in Multiple Sclerosis patients. Shares of Acorda fell 9.65% on the news.
Just last month, Bass announced at a conference in Copenhagen that his fund has a separate pharmacy vehicle with half of the fund’s resources dedicated to it.
Bass told conference attendees that “pay for delay” is coming to an end for drugmakers. He also said he planned to file IPR petitions to challenge the validity of drugmaker patents.
“This will change the way pharma companies [manage] their BS patents,” Bass said at that conference.