Short Seller’s Paradise

Published on
November 17th, 2017
Topic
Micro, Fund Structure, Investment Framework
Duration
64 minutes
Asset class
Equities

Short Seller’s Paradise

The Interview ·
Featuring John Hempton

Published on: November 17th, 2017 • Duration: 64 minutes • Asset Class: Equities • Topic: Micro, Fund Structure, Investment Framework

John Hempton of Bronte Capital, notable for uncovering fraudulent and dubious accounting practices in multi-billion market cap stocks, joins Real Vision for an extended interview to discuss his short selling framework and the opportunities he’s seeing in the market, which includes as many shorts as he wants, but very few longs. Filmed in Sydney on November 9, 2017.

Comments

  • KN
    Krister N.
    17 March 2018 @ 18:17
    BABA is a short on the Chinese market, not a fraud. TSLA is a better candidate.
  • RD
    Ron D.
    18 February 2018 @ 19:32
    amazing guy. you can tell the genuine joy he gets from what he does - nothing fake about it, no greed. The way he tells these amazing stories is the one of an amazed kid, looking at how stupid the world is. This is the type of stuff one is not hearing on the street. Great job RV ! Learned a lot.
  • RD
    Ron D.
    18 February 2018 @ 19:32
    amazing guy. you can tell the genuine joy he gets from what he does - nothing fake about it, no greed. The way he tells these amazing stories is the one of an amazed kid, looking at how stupid the world is. This is the type of stuff one is not hearing on the street. Great job RV ! Learned a lot.
  • CY
    C Y.
    7 December 2017 @ 21:04
    this dude is awesome
  • WM
    Will M.
    2 December 2017 @ 16:22
    Great stuff. Loved the stories and justifications. Bit of a strange hard cut off though?
  • AG
    Alexander G.
    30 November 2017 @ 17:41
    very enjoyable
  • JH
    Joel H.
    27 November 2017 @ 00:51
    Wow, amazing. Learned alot on this one!
  • AE
    Alex E.
    26 November 2017 @ 01:28
    Good interview, but I found it disturbing. Disturbing that John and his team were able to find so many shorting opportunities in Canada. I, however, am not surprised. Given how tiny the budgets are for individual provincial securities offices, enforcement is virtually non-existent. During the Harper government years, an effort to create a national SEC was tried but failed due to inter-provincial pissing matches and general bickering amongst the various offices themselves. Now we know the repercussions! Hey, Fraudsters, Cheats and snake-oil salesman of the World, come to Canada where you can get away with bloody murder...
  • KB
    Keith B.
    23 November 2017 @ 00:28
    “Found Sino Forest from your database? We... found it... through a lawyer.” As opposed to giving creds to MW like he already did in his blog: http://brontecapital.blogspot.co.uk/2011/06/muddy-waters-finest-take-on-chinese.html?m=1 Hugely entertaining, but on occasions a bit like a grandmother’s fart: 40% air, 60% crap
    • MB
      M B.
      28 November 2017 @ 16:39
      He's good but he tries too hard to tell/show everyone how much he knows, lack of humility stops him from being great.
  • DC
    D C.
    22 November 2017 @ 20:11
    Fascinating interview. But the Aussie accent requires a few more takes before I get what he is actually saying. The transcript definitely helps!
  • MM
    Mark M.
    22 November 2017 @ 10:16
    What a great incite into the rouges of this world and to know that someone is out there on the crusade to expose them, if I get a wish list of people that you would like to be stuck on a deserted Island with John Hampton will be one of those persons As this world wide bubble of all things keeps getting more profound JH will be an invaluable man to be listening too What an incredible mind RV need to reschedule that Aussie!
  • MS
    Matt S.
    22 November 2017 @ 07:40
    Classic RVTV - none of the CFR stuff.......... ;)
  • NG
    Nitin G.
    21 November 2017 @ 22:33
    I'm a great fan of John's work and been following him for while. His stories as insightful while being funny but I think he should have delved more on the process. For example, how should one approach in digging the history of the management, which eventually becomes a pointer for further research.
  • SB
    Stewart B.
    21 November 2017 @ 22:19
    Brilliant! It just goes to show how lazy and incompetent the regulators are.
  • VP
    Vincent P.
    21 November 2017 @ 20:27
    I knew those dating sites were fake and lopsided! I knew it! Short sellers are a keen bunch and brave too! Great interview.
  • GM
    Greg M.
    21 November 2017 @ 16:16
    I liked the interview. My only issue with the video is the interview seems like it was cut short. Very awkward ending.
    • GG
      Glenn G.
      22 November 2017 @ 03:17
      I agree! He was very entertaining..... I could have hung in there for another hour listening to him.
  • JL
    John L.
    21 November 2017 @ 14:09
    Fantastic, Fantastic, Fantastic!
  • DY
    Damian Y.
    21 November 2017 @ 12:19
    Great interview. John is a very charismatic and entertaining character who should write a book about his experiences as a short seller. I'm sure it would make the best sellers list.
  • JR
    Jon R.
    20 November 2017 @ 22:50
    Entertaining though I'm always more interested in actionable ideas. Would have preferred to hear a follow up on Verizon that he highly touted in his last RV interview.
  • BP
    Bob P.
    20 November 2017 @ 20:55
    Judging from all the accolades, this must have been over my head. My take aways are: 1) the world is full of shysters that would like to separate you from your money, 2) getting you to invest with them is a time honored shyster tactic, 3) tigers don't usually change their stripes, and 4) if you keep track of securities shysters and short their endeavors you MAY make some money - IF you are really good at managing the risks involved with short trades (like the guys at Bronte). While entertaining, I did not glean any thought provoking or useful insights from this interview.
  • SB
    Sean B.
    20 November 2017 @ 17:53
    Outstanding!
  • AK
    Anthony K.
    20 November 2017 @ 14:53
    More like this please - thought provoking with lots to follow up on. Less on gold, oil and marijuana lah.
  • TF
    Terry F.
    20 November 2017 @ 11:18
    Great interview. I will be going through the transcript on this one. More like this.
  • DK
    D K.
    20 November 2017 @ 09:50
    Bring on more short sellers. Market will soon belong to them!
  • am
    amit m.
    19 November 2017 @ 19:24
    This is a classic. Should have had it go longer. Non linear thinking at its finest
  • MM
    Michael M.
    19 November 2017 @ 18:31
    If Winston Churchill was a trader we'd get John Hempton. Brilliant. Incredibly entertaining.
  • ao
    alex o.
    19 November 2017 @ 14:16
    Wow! Seriously intriguing but also kind of says "go with what you know" between the limes. Anal leakage and ghonnaria(sp?) aside.
  • FM
    Faris M.
    19 November 2017 @ 07:47
    What do you think that $400Billion market cap short is? My guess is FB as that coincides with what else we've been reading on RealVision.
    • FM
      Faris M.
      19 November 2017 @ 07:49
      BTW awesome show, just fascinating to hear the insights.
    • MS
      Matt S.
      22 November 2017 @ 07:38
      I don't think FB is a fraud at all Other comments say BABA, I was wondering it was TSLA
    • EN
      Eric N.
      14 January 2019 @ 04:29
      TSLA is "only" 60bn though..
  • PN
    Philip N.
    19 November 2017 @ 04:11
    Sino-Forest sounds really familiar. Was there an interview about forest companies where it came up?
    • AM
      Andrew M.
      19 November 2017 @ 16:00
      It was the Carlson Block interview
    • MS
      Matt S.
      22 November 2017 @ 07:37
      it's a very famous short/fraud case....
  • AG
    Amir G.
    19 November 2017 @ 02:32
    One of the more interesting interviews except that I think his opinion on one topic is quite biased and totally misrepresented. He mentioned Toronto and Vancouver, yet he didn’t give a single specific example like he did for China, England, and other markets... I was in Sydney, Australia recently and saw how the properties market there is so artificially inflated that prices on average are 2.5 to 3 times higher than Toronto. The SEC in Canada is actually highly regulated and in many cases much stricter than the States. All in all, statements need to be backed up with factual points.
    • JL
      Jim L.
      21 November 2017 @ 00:25
      "artificially inflated"? What are you talking about? There's nothing artificial about it. Ridiculously high, yes, but it is a supply and demand issue. If you're referring to tax incentives, then yes, they are a big contributor to the housing boom in Sydney and Melbourne, but I would take issue with any claim that this constitutes 'artificial' demand
    • TM
      The-First-James M.
      22 November 2017 @ 12:51
      I kind of agree with Jim L. There is a shortage of East Coast Aussie property for speculative investment purposes. No shortage or rental properties/places to live though. Funny that...
  • RA
    Robert A.
    19 November 2017 @ 00:04
    Great anecdotal “heads up” on where we are in the cycle....when a Long fund that shorts on the side can’t find ANY longs and is knee deep in shorting opportunities—well, you easily get the picture! Could have used the camera staying on the 4 bullet points après the interview for a few seconds longer as I just couldn’t read them that fast....I really like to review those ending bullet points to see if they match up with my own take-aways. Excellent material there guys....enjoyable to watch and some nice take-always as well!
    • DB
      Douglas B.
      20 November 2017 @ 14:33
      I use screen capture
    • MS
      Matt S.
      22 November 2017 @ 07:34
      use the pause button
  • ZH
    Zack H.
    18 November 2017 @ 23:17
    Marc Cohodes would be a great follow up to this 1, get him on!
    • GG
      Glenn G.
      22 November 2017 @ 03:21
      Absolutely! We want the chicken farmer next - get ready to hear about some rat bastards of small stature, soul and mind. Cohodes was tweeting today about a film crew being in to interview him - I really hope it was RV !!
  • DH
    Dominick H.
    18 November 2017 @ 19:43
    One of the best. Please bring him back again
  • BV
    Bryan V.
    18 November 2017 @ 19:10
    This guy could probably make more money by publishing his stories on shorting nasty people. He is literally piggy backing on the con men and placing bets against the suckers who fall for it. Brillia
  • VS
    Vaibhav S.
    18 November 2017 @ 16:15
    This is awesome
  • AH
    Andreas H.
    18 November 2017 @ 15:17
    wow, great interview...
  • PB
    Pieter B.
    18 November 2017 @ 13:06
    Brilliant piece! Love the uncanny language and view;)
  • TA
    Tajassas A.
    18 November 2017 @ 11:32
    Loved it. Fantastic.
  • JD
    John D.
    18 November 2017 @ 10:53
    One of Your Best...
  • ii
    ida i.
    18 November 2017 @ 10:45
    EXCELLENT
  • ii
    ida i.
    18 November 2017 @ 10:45
    EXCELLENT
  • SP
    Sat P.
    18 November 2017 @ 06:48
    This is why I signed up for Real Vision, to get information you can't find in MSM.
  • JM
    John M.
    18 November 2017 @ 06:32
    Would love to know the name of the company owned by Russian mafia which is a short candidate!
    • MS
      Matt S.
      22 November 2017 @ 07:33
      definitley
  • SP
    Steve P.
    18 November 2017 @ 05:10
    Absolutely unmissable - great stuff RV. This REALLY adds knowledge value that helps investment decision making.
  • JN
    Jill N.
    18 November 2017 @ 03:21
    Love his stories & anecdotes as he takes you on a journey of the underwold , well done RV & Grant for bringing John to us
  • RM
    Robert M.
    18 November 2017 @ 02:25
    Great turn of phrase and analogies, very entertaining and credible.
  • DG
    Don G.
    18 November 2017 @ 01:43
    This is gold. Let it run.
  • TS
    Tyler S.
    17 November 2017 @ 23:19
    good watch, hard end
  • tw
    tam w.
    17 November 2017 @ 23:09
    How big is his fun and how has his performance been
  • tw
    tam w.
    17 November 2017 @ 23:06
    Great listen, thanks. It's sounded like john had a lot more to say . Why did you cut it and not let run?
  • BA
    Ben A.
    17 November 2017 @ 22:59
    Brilliant! Thanks RV. Matt pitches his interview very well, and John is the type of guy you want to listen to all day. This is the RVT.
  • JM
    Justin M.
    17 November 2017 @ 22:36
    This interview is packed full of great insights. Well done. Thank you for sharing.
  • md
    mike d.
    17 November 2017 @ 21:36
    I must say I learned more from this video then all the information provided by macro insiders so far. I look forward to more great info like this, also more actionable ideas. hopefully this site will make up for macro insiders.
    • MS
      Matt S.
      22 November 2017 @ 07:31
      is it not good? I'm glad it priced me out from even considering it!
  • MA
    Marko A.
    17 November 2017 @ 21:14
    wait, wait...was this the best interview ever on RV? Brilliant!
  • an
    adrian n.
    17 November 2017 @ 20:14
    Stories about dodgy characters and how they, and their businesses unravel. It's the quirks and foibles of humanity that compound to such extremes which make this so fascinating. Shorting opportunity? Even with all Johns info the idiotic market goes against him. Unless he calls up the BBC to give them an expose.
  • HJ
    Harry J.
    17 November 2017 @ 20:04
    Makes me paranoid!!!
  • SW
    Scott W.
    17 November 2017 @ 19:59
    THIS is why one pays for RealVision!
  • MB
    Max B.
    17 November 2017 @ 19:26
    Had me in stitches...well done :)
  • VM
    Vinnie M.
    17 November 2017 @ 19:04
    I feel smarter already!! Adventures in Finance, Macro Voices and WE STUDY BILLIONAIRES check out -- I just signed up THINKTANK so I'm in with these guys!!! when I make some money with these products I'll get the $3000 newsletters!!!! GREAT PRODUCTS GRANT and RAOUL
  • HH
    HODL H.
    17 November 2017 @ 18:42
    What is his 100bn fraud?? Anyone have ideas?
    • an
      adrian n.
      17 November 2017 @ 20:16
      There are no real snapchat customers?
    • PS
      Paul S.
      18 November 2017 @ 03:25
      BABA
    • RD
      Ryan D.
      18 November 2017 @ 04:52
      BABA is the 400B fraud
    • GG
      Glenn G.
      22 November 2017 @ 03:25
      Yes, BABA when this market turns - that is the first one to look to for a large market cap short. IMHO
    • MS
      Matt S.
      22 November 2017 @ 07:29
      you guys really think it's BABA?
    • MK
      Michael K.
      24 November 2017 @ 13:09
      He has went at BABA a few times
  • EH
    Eric H.
    17 November 2017 @ 18:16
    awesome vid...really diverse conversation!
  • VK
    Vladimir K.
    17 November 2017 @ 18:08
    Cupid story was hillarious :). I liked the details of other shorts, very unusual perspective, thank you for the interview.
  • GS
    George S.
    17 November 2017 @ 17:35
    John Hempton - the evil older brother of Russell Clark. Brilliant insights into portfolio construction and risk management. Also, as usual, John is extremely engaging.
  • CM
    C M.
    17 November 2017 @ 16:37
    He is a little sanctimonious for my taste. This was the John H lecture/commercial...
    • ns
      niall s.
      17 November 2017 @ 22:37
      Agreed on the sanctimonious , Seth Golden will not go bust shorting Vxx because he only uses 20 % of his 12 million gains to short vol . The majority of his gains are in conservative stocks , plus he has stated he is willing to go long Vxx when he thinks the time is right and as a full time volatility trader he will know before most .
  • SS
    Sam S.
    17 November 2017 @ 16:32
    Additionally, would like to know of his data of Marijuana Companies as most of these public companies seem to be ripe for shorting. Any info hugely appreciated. Thx!
    • GG
      Glenn G.
      22 November 2017 @ 03:28
      $WEED in Canada with its $3.5 billion market cap will be number one.
  • SS
    Sam S.
    17 November 2017 @ 16:30
    Mr. Hempton is a man who cuts thru the BS, creates more fun informing us of what's behind the curtain. I had a ball watching, listening and will watch this again shortly. I am interested in his comments on Medicis Pharma as to whether they were included in his list of bad guys, as I'm in Scottsdale, AZ and know of the founder by news only, who was well respected. I would love to learn more and more about and from Mr. Hempton. First Class piece!
  • SS
    Stephen S.
    17 November 2017 @ 16:17
    Could listen to this for hours, he should write a book.
  • HH
    HODL H.
    17 November 2017 @ 16:00
    Awesome video.
  • TD
    Tom D.
    17 November 2017 @ 15:53
    John Hempton’s stories are hilarious, wonderfully entertaining, and educational.
  • JH
    Jesse H.
    17 November 2017 @ 15:45
    Very entertaining and interesting...my favourite line has to be, "...these are men who you wouldn't want to marry your daughter" when describing companies they short. Lol. Absolutely brilliant.
  • JS
    John S.
    17 November 2017 @ 15:34
    Wow, excellent job bridging the theoretical with the practical! Great examples of the pitfalls of being right, but getting killed anyway. Illuminating on shale. Does anyone understand how the "cost of shorting" changes and what the cost is comprised of, beyond dividends?
    • OD
      Octavian D.
      17 November 2017 @ 18:11
      Hey John, outside of the dividends (which you have to pay while shorting the stock), the borrow costs refer to an interest rate that you are charged for being short. Since you are effectively borrowing the stock from someone else to short it, you are charged an interest rate just as you would for any debt. That interest rate changes based on multiple factors, but mostly based on the amount of people who are interested in shorting the stock (the more people want to short the stock, the higher the borrow cost, as there is a limited supply of stock that can be borrowed). I hope this helps!
    • GS
      Gordon S.
      18 November 2017 @ 19:47
      Thanks Octavian for the explanation. Are the interests usually payed daily? What is the best way to lend ones own shares and who usually makes these markets? What's typically the spread?
  • CL
    Cameron L.
    17 November 2017 @ 15:04
    Brilliant ! This is why i signed up to RV. Full length 60min in-depth brilliance, dissecting the frameworks and thought processes of fantastic minds. This is what we regularly had in 2015-2016 with RV, please bring more of these types of interviews back !
    • JH
      Jesse H.
      17 November 2017 @ 15:47
      Completely agree.
    • KR
      Kieran R.
      17 November 2017 @ 22:07
      Agree, more of this
    • AK
      Anthony K.
      20 November 2017 @ 15:07
      100% agree, I’d rather pay a little extra for this type of material every week than being up sold to publications that there’s no time to read
  • RM
    Richard M.
    17 November 2017 @ 14:54
    Fascinating interview! One interesting thing about this segment, other than the great "inside" stories of some of these frauds that he shorted, I have noticed that true "honest and upright" short sellers (eg, Fleckenstein, Cohodes, Chanos, Einhorn, etc) are almost always incredibly smart, nice, and funny people (and I would add Hempton to this list). Even though they are sometimes claimed to view the world (investment world at least) thru a dark prism, they almost always seem to have a sunny perspective on the "real" world (ie, non-investment world). I really like that!
  • DS
    Dan S.
    17 November 2017 @ 14:44
    Penny Stock Preventer? Professor? What was it?
    • AE
      Alex E.
      26 November 2017 @ 01:17
      Penny Stock Professor.
    • AE
      Alex E.
      26 November 2017 @ 01:17
      Penny Stock Professor.
  • RL
    Radu L.
    17 November 2017 @ 13:19
    http://pennystockprofessor.com/ is down, their page on FB is last updated in 2010
    • TS
      Tyler S.
      18 November 2017 @ 01:01
      if you want to see the site you can go to wayback machine http://web.archive.org you can see instances of the site here http://web.archive.org/web/20100724141735/http://www.pennystockprofessor.com:80/ they refer to this site http://www.perfectpennystocks.com which is still up.
  • JS
    John S.
    17 November 2017 @ 13:04
    Superb
  • TJ
    Terry J.
    17 November 2017 @ 12:10
    I always enjoy listening to John's valuable insights. Apart from being an incredibly interesting and successful investor, he provides an invaluable reminder of how many crooks and sharks infest our markets, and why there is never any substitute for personal exhaustive research and due diligence. Thank you RVTV.
  • Nv
    Nick v.
    17 November 2017 @ 11:35
    Entertaining and educational. Great job
  • js
    jacob s.
    17 November 2017 @ 11:09
    great stuff

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