Kyle Bass, founder of Hayman Capital Management, predicts that current oversupply of oil will “go from a glut to a sudden deficit” in 2016. “If you’re going to allocate capital for the next three to five years,” he says, “you should do it now.” He predicts that U.S. oil output, for example, will fall by 1 million barrels per day over the coming year. Bass may be worth listening to, considering he was one of few hedge fund managers who bet against subprime-mortgages in 2007/2008. That contrarian bet at the time made Bass over $500 million in profits according to Bloomberg.
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