Nathan Anderson started Hindenburg Research LLC, in 2017, a U.S. investment research firm focused on activist short-selling, in 2017.
Hindenburg Research is a financial research firm known for its investigative reports on various companies, often highlighting what it sees as fraudulent practices or corporate governance issues. The firm gained prominence for its critical reports on companies such as Nikola Corporation and Clover Health Investments Corp.
Hindenburg Research takes a short-selling approach, meaning it may bet against the stocks of the companies it investigates. Short selling involves borrowing shares and selling them with the expectation of buying them back at a lower price, thereby profiting from a decline in the stock’s value.
It’s important to note that while Hindenburg Research has brought attention to certain concerns about the companies it covers, its reports and findings can be controversial, and companies targeted by its reports often dispute the claims made. Investors and the public should approach such reports with caution and conduct their own research before making any financial decisions. Financial markets can be complex, and different parties may have varying perspectives on a given situation.
Important research by Hindenburg :
Nikola report
The Nikola Corporation was described as “an intricate fraud built on dozens of lies” in a report by Hindenburg Research, which also claimed that Trevor Milton, the company’s founder, was mostly responsible for the fraudulent operations. Nikola’s stock fell by 40% after the report was made public, and the Securities and Exchange Commission (SEC) started an investigation. Although Milton at first denied the accusations, he eventually resigned as Executive Chairman and was found guilty of wire and securities fraud. Nikola reported in November 2020 that they had “incurred significant expenses due to the legal and regulatory matters associated with the Hindenburg Report.”
Clover Health report and Chamath Palihapitiya
In February 2021, Hindenburg published a report regarding Clover Health, a Medicare Advantage plan. The article claimed that the company had failed to notify investors that it was the subject of a Department of Justice investigation.
Adani Group report
In January 2023, Hindenburg revealed that it had short positions in India’s Adani group and flagged debt and accounting concerns. According to a report published by Hindenburg, the Indian giant Adani Group has been involved in a flagrant stock manipulation and accounting fraud operation for many years. The share prices of the Adani Group firms sharply declined shortly after the report was released. The Adani Group was urged to file a lawsuit by Hindenburg if they thought the information was false, according to a follow-up article published by The Guardian. The value of the group dropped by $150 billion at the end of February 2023. Just one month after the report was released, Gautam Adani’s personal net worth dropped from third place in the world to thirty.