John Hempton is a renowned short seller and outspoken investor from Australia. His investor letters provide valuable insights on the market, particularly on the performance of shorted stocks.
So his investor letters are always worth the read.
This has been a short sellers market. Recently, his fund Bronte Capital has returned 1.6% during a quarter where the S&P 500 fell 16%. Hempton writes about a number of the companies that have been leading that fall. In particular, highly quality hyper-growth stocks, long-term compounders, and “the absolute-nonsense hyper-promoted scams”. And to make a return on these stocks, what we have to believe from here.
Hempton then talks about some stocks he has invested in. One that he sees as cheap is Meta aka Facebook – despite his belief that investments in the metaverse “strains our sense of credulity”. On the other hand, he is short “a few frauds targeting European ESG investors”. Two that he mentions are Total and Air Liquide.
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