Hindenburg news Updates: Hindenburg Research’s founder Nathan Anderson said he would disband the firm whose reports sparked heavy short-selling by investors and investigations by authorities, wiping billions from the market values of companies including India’s Adani Group and U.S.-based Nikola.
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Nathan Anderson, who started Hindenburg in 2017, cited the toll of the “rather intense, and at times, all-encompassing” nature of the work as the reason for his decision, in a website post published on Wednesday.
In his farewell letter, he wrote, “I write this from a place of joy. Building this has been a life’s dream. I did not know at the outset if it would be possible to find a fulfilling path. This wasn’t an easy option, but I was naïve to the danger and felt drawn to it magnetically.”
He goes on to add,“…it wasn’t always obvious to me, but I now view all of this as a love story. To my wife, you have been so patient with me. It has not been easy, to put it mildly, and I am forever grateful that you have sacrificed so much and pushed forward with me. And now, my dear, we get to enjoy it together for as long as this world will let us.
To my family and friends, I’m sorry for the times I have ignored you while I let my attention be drawn away. I can’t wait to have more time to share with you together. Lastly, I want to express how grateful I am to our readers”
Short-sellers like Anderson, who managed his firm’s own money but not that of others, bet against companies they believe have accounting issues, mismanagement or fraud, which they find usually after a long period of investigation.
Short-selling involves borrowing a stock to sell it in the expectation the price will fall, then repurchasing the shares and pocketing the difference. Should the price rise, the seller can be exposed to potentially unlimited losses
Adani Group ‘engaged in a brazen stock manipulation’. What are the allegations against conglomerate
Hindenburg Research report against the Adani Group, titled ‘Adani Group: How The World’s 3rd Richest Man Is Pulling The Largest Con In Corporate History’ came out in January 2023.
It alleged that the conglomerate was “engaged in a brazen stock manipulation and accounting fraud scheme over the course of decades”.
The short-seller also accused the Adani family members of creating offshore shell companies in tax havens such as Mauritius, the UAE, and the Caribbean Islands, using forged import-export documentation to show fake revenue, and laundering money from their listed public companies.
However, the conglomerate denied all the allegations.
Adani Group stocks will remain in focus as Hindenburg Research decides to shut shop
Adani Group stocks will be in focus on Thursday after Hindenburg Research, the short-seller behind the $100 billion Adani Group shares sell-off, is shutting down.
The US-based Hindenburg Research is being “disbanded”, its founder Nathan Anderson said in a note.
Hindenburg Research published reports against the Indian conglomerate in 2023. The short-seller accused Adani Group of using offshore tax havens improperly, a charge which the company denied.
‘Boy we shook some empires,’ Nathan Anderson praises his team in the letter
Praising his team, he said in the farewell letter, one at a time, and without a clear plan, we built a team of 11 incredible people. I hired each of them not because we needed workers, but because when our paths crossed and I could see who they were, I realized it was madness not to bring them on.
They are all smart, focused, and fun to work with. Little to no ego. When you meet them, they are all very nice and polite. But when it comes to this field, they are ruthless assassins, capable of world-class work. Like me, our team didn’t come from traditional finance backgrounds. My first hire often describes himself as a former bartender. We all have a shared view of the world, a mostly calm exterior, and a similar burning underlying intensity. They are all family to me.
We have all worked extremely hard, with a focus on precision and letting the evidence dictate our words.
Sometimes this meant taking big swings and taking on fights that are much bigger than any of us as individuals. Fraud, corruption, and negativity often seem overwhelming. Early on, a sense of justice was usually elusive. When it happened, it was tremendously fulfilling. It kept us going when we needed it.
And boy did we have an impact, eventually—more than I imagined was possible at the outset. Nearly 100 individuals have been charged civilly or criminally by regulators at least in part through our work, including billionaires and oligarchs. We shook some empires that we felt needed shaking.
