John Hempton is one of the best-known names in the Australian finance industry.
His fund, Bronte Capital, recently closed to new money having exceeded more than $700 million in funds under management.
In the latest episode of the Devils and Details podcast, Hempton sets out some of the ways he thinks about companies — the good and the bad — and shares some insights on how Bronte finds companies to buy as well as target for short-selling.
The conversation covers business models for everything from Apple, aircraft parts manufacturers and tobacco companies to decking manufacturers and mining exploration companies. Also on the show:
- Hempton reveals Bronte has taken short positions in around 900 companies over the past decade.
- He explains how the fund uses a computer program to find “scumbags” — people who have previously been involved in frauds — and tracks their involvement in various businesses.
- The aircraft parts maker whose technology changed the efficiency of global aviation.
- Why shorting is so dangerous, can rapidly destroy wealth — and what it’s like when it goes wrong.
- On crypto, Hempton says he has had no interest until recently, when people who used to promote bad companies started showing up promoting ICOs.
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