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Exclusive-Investor Kyle Bass pivots to green credits, returned cash from hedge fund -Breaking

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© Reuters. FILE PHOTO – Kyle Bass (founder of Hayman Capital Management) speaks at the Reuters Global Investment 2019 Outlook Summit, New York, U.S.A, November 14, 2018. REUTERS/Brendan McDermid

By Svea Herbst-Bayliss

(Reuters] – Kyle Bass, an investor who had spent most of his career betting against sovereign debt crises or interest rates, has shifted focus away from hedge funds and is now focusing on the environment. He will be working with a firm to buy land in rural areas and offer environmental mitigation offsets.

Conservation Equity Management launched its new company on Thursday. The firm plans to build streams, wetlands, and habitats of endangered species to generate offsets (or tradable credits) to lessen the ecological impact from development. Large corporations and developers who generate emissions from their business are keen to secure these credits.

Bass suggested that Texas’s land and other nearby areas could be utilized for renewable energy and regenerative cattle-grazing. Bass said that the company plans to enhance the ecology of any properties it acquires, and eventually sell more parcels.

Bass, who spent his childhood playing in the streams and forests near Texas, now wants to explore a new type of investing. Endowments, pension funds, and wealthy families are looking for ways to increase their wealth while protecting the environment.

Bass declared, “This moment is the right time for Conservation Equity.”

Texas is a pro-business state with low taxes. More people will move here. There are devastating environmental effects. Firms must assess their environmental footprint, carbon footprint, and mitigation options.

This new venture marks the beginning of a new chapter for a prominent hedge fund manager, who was famous because he had bet against overheated housing markets during financial crises and then on Greek debt and Japanese yen.

In late 2005, Bass founded Hayman Capital Management. The fund made 200% profit on its bets against subprime markets in 2007. After earning them 14% over the three-quarters of the year, Hayman’s assets were down to $300 million by 2020. Bass made the decision to give the majority of the funds back to investors in 2021.

Terry Anderson is now working with him as a biologist and forester to create a new firm that is more focused on private-equity. He believes it will succeed over the long term because investors require hard assets, such as real property, in order to hedge against rising prices as well as federal monetary policies that have been triggered by the pandemic.

Bass stated that Conservation Equity aims to capitalize on significant trends in geography and migration to create an asset class to provide investors with both profit and purpose.

Conservation Equity Management already closed two transactions, the Bahia Grande Conservation Parcle and Cherokee Ridge River Farm. Bass also held an investor meeting there this week due to the winter storm that hit the region.

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