John Hempton on Greensill, Archegos and What It's Like To Short Right Now
Apr 19, 2021
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In this insightful discussion, John Hempton, CIO and co-founder of Bronte Capital, shares his expertise in short selling amidst a volatile market landscape. He unpacks the high-profile collapses of Greensill and Archegos, revealing the disconnect between soaring stock indices and underlying financial risks. Hempton highlights reckless lending practices, dubious financing strategies, and the challenges posed by increased retail investor participation. With a sharp focus on modern investment trends, he emphasizes the need for savvy risk management in today’s trading environment.
It's a weird moment for the markets. The big stock indices are near all time highs. And yet there have been some high profile meltdowns and blowups. There was the collapse of the vendor financing firm Greensill. And there was the wipeout of the Bill Hwang fortune. Meanwhile, numerous SPACs and other speculative stocks have been getting clobbered. So we talked to short seller John Hempton, the CIO and co-founder of Bronte Capital, for an explanation of what's really going on.