December 21, 2012

Kyle Bass Bought 9%+ of Two Companies

Kyle Bass of Hayman Capital has purchased close to ten percent stakes in 2 public firms, according to SEC filings published today. Kyle Bass bought 5,064,550 shares of Dex One Corporation (NYSE:DEXO) or 9.95 percent of the company. He also purchased 1,560,941 shares of SuperMedia Inc (NASDAQ:SPMD), or 9.96% of outstanding shares. What is interesting is that John Paulson is also large shareholder in these firms.

Hayman Capital has very small investments in equities, and both companies have a market cap under $100 million, making this a small transaction for the hedge fund.

SuperMedia Inc., (SuperMedia) is a yellow pages directory publisher in the United States. The Company also offers digital advertising solutions. The Company places its client’s business information into its portfolio of local media solutions, which includes the Superpages directories,, digital local search resource on both desktop and mobile devices, the network, which is a digital syndication network, and its Superpages direct mailers. In addition, the Company offer solutions for social media, digital content creation management, reputation management and search engine optimization. During the year ended December 31, 2011, the Company published approximately 1,000 directories in 32 states and distributed approximately 89 million directories to businesses and residences in the United States.

Dex One Corporation, formerly R.H. Donnelley Corporation (RHD), is a marketing services company that helps local businesses to reach consumers. It offers local businesses personalized marketing consulting services and exposure across a network of local marketing products, including its print, online and mobile yellow pages and search solutions, as well as search engines. Through its Dex Advantage, clients’ business information is published and marketed through a single profile and distributed via a variety of both owned and operated products, and through other local search products. On May 28, 2009, RHD and its subsidiaries filed voluntary petitions for Chapter 11 relief under the Bankruptcy Code in the United States Bankruptcy Court for the District of Delaware. RHD emerged from Chapter 11 relief under Title 11 of the United States Code on January 29, 2010 (Effective Date). On the Effective Date and in connection with its emergence from Chapter 11, RHD was renamed Dex One Corporation.

Kyle Bass, an American hedge fund manager, is the Founder of Hayman Capital. He received extensive coverage in the financial press for profiting $590 million by short selling the sub-prime mortgage bond market, before that market crashed. In 2011, Bass initiated a huge position in Greek sovereign debt through CDSs. Media reports were that he could profit up to 650 times his investment should Greece default on its debt obligations.