Dallas-based hedge fund investor Kyle Bass has launched a website that takes on a Grapevine-based United Development Fund (UDF), a company in which he has a short position.
The website alleges that UDF is a “Ponzi scheme.” UDF has denied these charges and sys it is cooperating with a Securities and Exchange Commission “fact-finding investigation.” Bass and others have been calling the firm’s practices into question for several months, driving the price of its stock down.
Bass’ firm, Hayman Capital Management L.P. maintains a short position in the common stock of UDF. On the website, Bass and Hayman Capital admit they will make money if the stock price of UDF declines.
According to a news release from the company: “We believe that this hedge fund is trying to unlawfully profit by manipulating and depressing the price of United Development Funding IV shares.” UDF is a residential finance company and has financed more than $1 billion in residential community development in Texas.
Bass , a Texas Christian University alumnus, is the founder and managing member of the Hayman Capital Master Fund. He started the hedge fund in 2006 after saving $10 million from selling bonds for Wall Street firms such as Bear Stearns & Co. and Legg Mason Inc.
https://udfexposed.com/