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Want To ‘Invest’ In Japan? Kyle Bass Has A Fund For That

According to Bloomberg Brief, Bass launched the Japan Macro Opportunities Master Fund in July and is still accepting investors who agree with him that the country has some debt and demographic issues.

Bass had an interest in Japan before the country’s biggest earthquake struck on March 11 because of its “fundamentally unsustainable” fiscal and monetary policy and demographic challenges including an aging population, according to a presentation to investors…Bass is positioning the fund for an increase in 5-, 10- and 30-year Japanese interest rates and the yen’s decline agains the US dollar, the presentation said. Japan won’t be able to fund its deficits domestically and will be forced to borrow international capital at high interest rates, according to the presentation. [The fund’s] assets are $101 million. The minimum investment is $250,000. The fund charges a management fee of 1.25% of assets and a performance fee of 20 percent of profits, paid after capital is returned to investors. It has a three-year investment horizon during which investments are locked up.

Update: Apparently the Japan fund had its final closing two weeks ago. You snooze you loose!

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23 Responses to “Want To ‘Invest’ In Japan? Kyle Bass Has A Fund For That”

  1. AmericanBandersnatch says:

    “Bass is positioning the fund for an increase in 5-, 10- and 30-year Japanese interest rates and the yen’s decline agains the US dollar”. If you’ve already told me the strategy, why do I need to pay you 1.25 and 20 to executre the trades?

  2. TEPCO says:

    We have a distressed asset they can buy.

  3. Torquil69 says:

    because getting a short on in the mid part of the jgb curve while running a dynamic hedge on anticipated depreciation in yen assets with a quarter mil won’t replicate the fund results presumably. you could do it with futues pretty easily but if you are wrong over any period in a meaningful way you get blown out.

    • Guest says:

      You’re the kind of dude that talks like this at happy hours and people stand there and nod but really just want to fucking punch you.

      – Not lolslayedyou and not a terribly big fan of his work

    • Guest says:

      You’re the kind of dude that talks like this at happy hours and people stand there and nod but really just want to fucking punch you.

      – Not lolslayedyou and not a terribly big fan of his work

    • Guest says:

      You’re the kind of dude that talks like this at happy hours and people stand there and nod but really just want to fucking punch you.

      – Not lolslayedyou and not a terribly big fan of his work

  4. Anonymous says:

    Any chance that this will outperform Bass’ latest Japan Nuclear Opportunities Fund?

  5. Anonymous says:

    I’m also starting up a distressed fund reopening Sam Goody’s across the country if anyone is interested.

  6. Anonymous says:

    Short Japan– the trade that sank a thousand funds…

  7. Your Grandfather says:

    Ahhh… the ol’ “open up a fund to take advantage of a macro call” trick. I’m not falling for this one you young whippersnapper.

  8. Lol says:

    Umm… doesn’t Japan issue its own currency and have its debt denominated in Yen? Good luck on that three-year lock-up.