When hedge fund manager John Hempton became suspicious of Wirecard, little did he imagine a part in uncovering the ‘biggest fraud in German history’.
Around 2014, Alex Turnbull was asked by a professional Sydney investor, John Hempton, if he would inspect a Jakarta office.
As a short seller, or someone who bets that share prices will fall, he wanted evidence that revenue Wirecard had reported from the Indonesian capital wasn’t legitimate and asked his friend Turnbull, the son of former prime minister Malcolm Turnbull, to travel from his Singapore home to inspect Wirecard’s office.
Wirecard was indeed a house of cards but, as short sellers have always understood, knowing something is suspicious is no guarantee of returns. Although New York-based Hindenburg Research, another short seller, is assumed to have made money out of its recent report on India’s Adani Group, such successes are few and far between. As Hempton can attest, more often the short seller doesn’t make anything at all.
The best shorts are often popular stocks – Australian short-seller targets have included JB Hi-Fi, Harvey Norman, WiseTech Global and Fortescue Metals Group. They successfully countered attacks.Executives have a disproportionate incentive to fight back. Investors can only lose money. Managers are defending their livelihoods, and possibly freedom.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
John Travolta chokes up in heartbreaking tribute to Olivia Newton-John at the OscarsAustralia has missed out at this year's Oscars with Cate Blanchett beaten for best actress. One film dominated the ceremony, taking out seven awards. AshleeMullany 7NEWS
Read more »
Aukus will bolster stability in the Asia-Pacific, not undermine it | John BlaxlandThere are risks – but the trilateral security pact is likely to provide greater US resolve to stay engaged in Australia’s neighbourhood
Read more »
'Hopelessly devoted': Travolta’s tearful Oscar’s tribute to co-star Olivia Newton-JohnThe 2023 Academy Awards have brought out several noteworthy moments, including a special tribute by actor John Travolta to his 'dear friend' Olivia Newton-John.
Read more »
Amid the devastation and misery in Ukraine, one young woman's story stayed with me above allThe most striking sentiment I came across in a recent trip to Ukraine was the absolute determination of Ukrainians to fight to the end, whatever that end may be, writes John Lyons.
Read more »
Fulham v Arsenal: Premier League – liveMinute-by-minute report: Can Arsenal extend their lead at the top of the table when they visit west London? Join John Brewin
Read more »
Digital billboards in Sydney’s CBD are big business for QMSA review of its City of Sydney screens hasn’t stopped QMS from growing from a “skinny teenager” into “fine young people” for owner Quadrant, boss John O’Neill says.
Read more »