Hindenburg Research, the short-seller behind Adani Group shares sell-off, is being "disbanded". It's founder Nate Anderson said in a note, "As I’ve shared with family, friends and our team since late last year, I have made the decision to disband Hindenburg Research."
Nathan Anderson, who started Hindenburg in 2017, said the plan was to wind up after “we finished the pipeline of ideas we were working on.”
“And as of the last Ponzi cases we just completed and are sharing with regulators, that day is today,” he said in a farewell note.
Anderson 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.
Hindenburg Research founder Anderson recalled his time at the organization saying, "We have days of bizarre, hilarious and ridiculous stories and we’ve had a lot of fun amidst the pressure and challenges."
"It has been the adventure of a lifetime," he added. "I now view all of this as a love story," he said.
“So, why disband now? There is not one specific thing—no particular threat, no health issue, and no big personal issue,” Anderson wrote.
He went on to say, “Someone once told me that at a certain point a successful career becomes a selfish act. Early on, I felt I needed to prove some things to myself. I have now finally found some comfort with myself, probably for the first time in my life.”
“I probably could have had it all along had I let myself, but I needed to put myself through a bit of hell first. The intensity and focus has come at the cost of missing a lot of the rest of the world and the people I care about. I now view Hindenburg as a chapter in my life, not a central thing that defines me,”his statement read.
Anderson said that he will focus on ensuring everyone on his team lands where they want to be next.
"Some are going to start their own research firm, which I will strongly and publicly encourage, even as I will have no personal involvement," he said.
"There are others on our team who are now free agents—so feel free to reach out to me if you have a need for anyone who is brilliant, focused, and easy to work with, as they all are," he added.
Hindenburg Research is 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 US-based Nikola.
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.
In 2023, another famous short-seller decided to shut down his firm. Jim Chanos, best-known for his bets against energy trader Enron many months before the company's December 2001 bankruptcy amid an accounting scandal, closed his hedge fund, saying its business model had come under pressure.
Hindenburg was named after the high-profile disaster of Germany's Hindenburg airship in 1937, which ignited as it flew into New Jersey.
After finding potential wrongdoing, Hindenburg published a public report explaining the case and bet against the target company, hoping to make a profit. Other investors would often make their own trades based on Hindenburg's research.
On its website, Hindenburg has said it looked for "man-made disasters," such as accounting irregularities, mismanagement and undisclosed related-party transactions.
One of Hindenburg's reports was a bet against Indian conglomerate Adani Group in 2023 that led to more than $100 billion in value wiped off the group's shares.
The short-seller accused Adani Group of using offshore tax havens improperly, which the company denied.
US prosecutors announced in November that Gautam Adani, the billionaire chair of Adani Group and one of the world's richest people, had been indicted in New York over his role in an alleged multibillion-dollar bribery and fraud scheme.
Hindenburg also went after electric truck maker Nikola in 2020, in one of its best-known shorts.
The short-seller said Nikola deceived investors about its technological developments. Anderson challenged a video Nikola produced showing its electric truck cruising at high speed, when in fact the vehicle was rolled down a hill.
A US jury convicted Nikola's founder Trevor Milton of fraud in 2022 over allegations he lied to investors.
In 2023, the firm shorted Carl Icahn's Icahn Enterprises and Jack Dorsey-led Block.
"We shook some empires that we felt needed shaking," Anderson wrote, adding nearly 100 people had been charged by regulators "at least in part" because of Hindenburg's work.
Anderson, a University of Connecticut graduate who started his career in finance at a data firm, said in his post that the intensity and focus of his work came at a cost, and he was missing “a lot of the rest of the world and the people I care about.”
"I now view Hindenburg as a chapter in my life, not a central thing that defines me," Anderson wrote.
"So over the next 6 months or so I plan to work on a series of materials and videos to open-source every aspect of our model and how we conduct our investigations," he said of his future plans.
(With inputs from agencies)
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