A closely followed hedge fund manager known for correctly betting on the housing marketâ??s collapse four years ago purchased a small stake in the nationâ??s largest mortgage insurance company in a bet that the housing market has neared bottom.

J. Kyle Bass, portfolio manager at Dallas-based Hayman Capital Management LP, bought the 4.9% stake in MGIC Investment Corp, according to federal filings. He said on Monday the bet reflected his view that the housing marketâ??s losses had largely been absorbed.