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Kyle Bass: Mystery of MTG and His "Long-Term Hold"

July 25, 2012 | About:

I found this video of Kyle Bass talking about his 5% stake in MGIC Investment Corp. (NYSE:MTG). I believe the video is from December 2011. He goes on to describe it as a long-term hold with prospects of being a serious multi-bagger. However, it appears from GuruFocus and his form 13F that he sold 75% of his holdings in the first quarter of 2012. Assuming he did sell 75% shortly after recommending it as a buy in the video, does anyone know what might have transpired in the first quarter that changed his long-term outlook? Perhaps the python hasn't digested the pig (see video)?


Rating: 3.5/5 (10 votes)


Jorgenv - 5 years ago    Report SPAM
Bass bought MTG at under $2, and sold off at between $4 and $5. Considering his bearish views on the markets in general, it's reasonable to assume that he saw the Q1 spike for what it was and simply collected some gains before the market went back down again. MTG is now trading at $2.20, and he could easily be buying back in for a long term position.

The loss in share price that has happened since has nothing to do with the fundamentals of the company or the industry, but is merely an example of how volatile these stocks (MTG, RDN, GNW etc) are right now, and how vulnerable they are to market swings.

Disclosure: I own long positions in both MTG and RDN.
Dana-guru - 5 years ago    Report SPAM
I was taken by surprise on this stock, big time!! wondering if anyone here has any hope that this company will survive ?? I lost my shirt on this one (bought it at over $4), and bought some more shares lately at around $1.20

TODAY it was trading at $1.13... and the ratings are very bad.

Where/how can I get more info about this stock? Still hold tones of shares... :((

I am an independent small (unlucky/novice) investor... and female to boot

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