Kyle Bass’s February investor letter is, as usual, thoughtful and data-intense. It is also uncommonly amusing, thankfully, given the depressing state of the global economy that it so skillfully dissects.
...my host informed me of an audit recently done on one of the largest hospitals in Athens. This hospital was hemorrhaging Euros, and the Greek government is required to make up the deficit with capital injections. Officials began an inquiry into these losses and found 45 gardeners on staff at the hospital. The most interesting fact about the hospital was that it did not have a garden. The corruption is endemic in the society, and it is no wonder that Greece has been a serial defaulter throughout history (91 aggregate years in the last 182 – or approximately half the time). It is unfortunate that it is about to happen once again. Although – as we have previously stated, restructuring is actually the gateway to renewed growth and prosperity over time – we have identified at least two assets that we would like to own in Greece in a post-restructuring environment.
Read the entire letter here:
Kyle Bass - Hayman Investor Letter - February 2011 Kyle Bass - Hayman Investor Letter - February 2011 - Fed Governors Attachment
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