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EssentialThe Essential Conversation

Bernd Ondruch and Mark Hiley: Tales from the Frontlines of Short Selling

Featuring Bernd Ondruch and Mark Hiley

Dec 02, 2020 • 75 minutes

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Essential

The Essential Conversation

Bernd Ondruch and Mark Hiley: Tales from the Frontlines of Short Selling

How can investors succeed at the subtle and challenging art of short selling? Learn from two of the world's best.

Featuring Bernd Ondruch and Mark Hiley

Dec 02, 2020 • 75 minutes

Bernd Ondruch, founder & CIO of Astellon Capital Partners, welcomes Mark Hiley, veteran short-seller and founder of The Analyst, for a wide-ranging conversation about the subtle and challenging field of short selling. Ondruch and Hiley recount war stories from previous shorts such as Wirecard, Asian Bamboo, and NMC Health, sharing their techniques for spotting red flags ranging from dodgy accounting to non-existent factories. Hiley and Ondruch weigh in on the common challenges short sellers face, such as margin calls, defiant long-only investors, and guileful misrepresentations by management. Lastly, after reflection on the strictures placed on short sellers under the new regulatory regime of Markets in Financial Instruments Directive II (MiFID II), Hiley and Ondruch impart some advice to investors who dare to dabble in this delicate art. Filmed on November 30, 2020. Key learnings: Identify the duration of your trade as some shorts require years to play out. Contrastingly, know when to get out. Be wary of crowded shorts as well as companies who appear to grow a great deal – it is often easier to short the value traps (unless, of course there is truly fraudulent accounting at play). Lastly, field work is incredibly important as that’s one of the last activities that computers can't do themselves. Show More

The Essential Conversation is the world's premier financial-market-focused conversation series. The smartest people in markets, finance, economics, and business engage in deep-diving discussions about the global macro landscape, generating actionable takeaways that can help your decision-making process. Tune in to peer-to-peer conversations between the brightest minds in the investing world, and tune up your portfolio.

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The Essential Conversation is the world's premier financial-market-focused conversation series. The smartest people in markets, finance, economics, and business engage in deep-diving discussions about the global macro landscape, generating actionable takeaways that can help your decision-making process. Tune in to peer-to-peer conversations between the brightest minds in the investing world, and tune up your portfolio.

More Episodes

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