Global fund manager John Hempton, co-founder and Chief Investment Officer at Sydney-based Bronte Capital is a maverick investor who prides himself on being eccentric and loves to track down corporate frauds and short sell their shares. He creates critics, particularly amongst managements, because he’s a short-seller. In Part 1 of this interview, Hempton explains why he short sells, or bets against companies whose shares he believes will go down. In its 11 years, he says Bronte Capital has shorted over 1,000 stocks globally. But he also invests long in good, quality companies. He talks of the crucial importance of portfolio risk management as a short-seller; and why Europe’s biggest stock fraud - the recent scandal engulfing Wirecard- not only burnt Bronte Capital but why it could happen in Australia.