Published on: August 4th, 2020 • Duration: 56 minutes
With valuations stretched, economic turmoil affecting cash flows for huge swaths of the global economy, and high-profile frauds like Wirecard and Luckin Coffee making headlines, it seems like high time to dig in and find the next big short. Quinton Mathews, founding member of boutique investment advisory firm QKM, would say otherwise. In this interview with Real Vision's Max Wiethe, Mathews argues that although researching, publishing, and trading based on your own activist short seller reports can be profitable and fulfilling work, the path is filled with pitfalls like lawsuits and regulator investigations that might not have factored into the P&L you envisioned. He walks viewers through his own journey learning the hard way about the unforeseen costs of short selling, the larger problems within the financial system related to regulation and enforcement, and the epiphanies he has had about shorting at different points in the economic cycle. As well, Mathews puts forward the high-minded goal of starting a dialogue with corporations, regulators, and activist short sellers to improve the system for all market participants. Filmed on July 22, 2020.
