The Story Of Shorting Home Capital (w/ Marc Cohodes) | Interview | Real Vision™

This Home Capital story didn't make it into the final cut of the Marc Cohodes interview on Real Vision, so you'll sure as hell want to see what did. Listen to Marc Cohodes on Real Vision and become a better investor: http://rvtv.io/2oiHI2f

Real Vision's new flagship interview series premieres, as famed short seller Marc Cohodes joins Grant Williams for a candid and emotionally raw interview. In the first in a series of extended discussions with successful investors, Grant asks Marc about his short selection process, the difficulty of managing emotions when embroiled in a fight and his current battles with a series of companies he believes to be fraudulent. Marc offers a vicious takedown of biotech company MiMedx, and shares a gut-wrenching story of losing money during 2008, despite being perfectly positioned.

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About The Interview:
Unfiltered, long-form deep dives with the most successful investors in the world. In discussions across a range of subjects, we dig into the minds of the sharpest investors to find out what makes them tick. If you’ve ever wanted to learn from the best, this series is where to go.

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Real Vision™ is the destination for the world’s most successful investors to share their thoughts about what’s happening in today's markets. Think: TED Talks for Finance. On Real Vision™ you get exclusive access to watch the most successful investors, hedge fund managers and traders who share their frank and in-depth investment insights with no agenda, hype or bias. Make smart investment decisions and grow your portfolio with original content brought to you by the biggest names in finance, who get to say what they really think on Real Vision™.

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The Story Of Shorting Home Capital (w/ Marc Cohodes) | Interview | Real Vision™
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Transcript:
Are you a farmer? Are you learning to be a farmer? Or is it something that you've always wanted to do or? Well, my grandfather was a farmer in Wisconsin. It's very good for one's mind. So I enjoy it, sort of but a different version. My main passion is my family and these goofy ass stocks, and these crappy companies. But to unwind a little bit I do this and I have fun with it. Marc Cahodes is well known for his very public stance on Canada's home capital group. A company he believes will eventually go to zero. In my recent conversation with him at his chicken farm in Sonoma county, Marc recounted his Home Capital story, as only he can. Amazingly our conversation was so good, so varied and so wide-ranging that what you're about to watch had to be left on the cutting room floor. Now think about that for a moment, if the Home Capital story didn't make it into the final cut for the interview with Marc Cohodes you'll sure as hell want to see what did.
So there's few people who I really respect investment-wise, one is Steve Eisman who is a pal. I like him. And he, I think, mentioned Home Capita Sohn Conference I don't know if it was '13, '14 or '15, he brought it up. And it put it on its radar for me, cause I didn't really know about it then. And he was right but they doubled the stock on him, which doesn't make him wrong, just makes him early. It's happened to me more than I'd like to remember. So I was watching it cause again I'm a huge fan of his, and the Canadian housing market was booming. And Home Cap with insider selling comes out and misses a quarter, and I'm thinking "Fuck, how are these guys missing a quarter with the market booming so much?" And I shorted the stock that day, it was down 3 or 4, low low 50s and that got me started on it. I didn't know at the time it was a fraud but there was clearly something going on which caused them to miss, they had to come clean on a billion eight of mortgage fraud, first 900 million then a billion eight. Stock then traced to low 30s. Only then did I realize that this thing was just a major fraud. I mean Home Cap is a bank, that should have failed. It's a fraud, it's a fraud on the public, it's an admitted fraud. They've still done a bunch of stuff they haven't confessed to, but in order to build this thing out the Canadian banks, the legitimate banks, wanted nothing to do with them. So the only way to solve this thing was with a Warren Buffett type figure because the real banks and the finance people in the know in Canada wanted nothing to do with them.