The U.S. Securities and Exchange Commission is looking into whether statements made by hedge fund manager Kyle Bass in relation to his short position in Texas real-estate lender United Development Funding IV conveyed false or misleading statements amounting to market manipulation, Dow Jones reported, citing people familiar with the matter that it didn’t identify.

The SEC investigation is in early stages and may not result in any formal claims

Bass declined to respond to questions about any SEC probe; SEC spokeswoman declined to comment: DJ