Hindenburg Research: All you need to know about US-based research team that shorted Adani Group stock | Mint
Active Stocks
Fri Feb 23 2024 15:58:13
  1. Tata Steel share price
  2. 145.50 -0.24%
  1. State Bank Of India share price
  2. 759.40 -0.86%
  1. HDFC Bank share price
  2. 1,420.90 0.08%
  1. NTPC share price
  2. 337.70 -0.54%
  1. ITC share price
  2. 411.60 -0.65%
Business News/ News / India/  Hindenburg Research: All you need to know about US-based research team that shorted Adani Group stock
BackBack

Hindenburg Research: All you need to know about US-based research team that shorted Adani Group stock

Hindenburg Research, investment research firm published a report on Adani Group, headed by Gautam Adani, on Wednesday said that it is presenting evidence that the Group has engaged in a 'brazen stock manipulation and accounting fraud scheme over the course of decades.'

The logo of the Adani Group is seen on the facade of one of its buildings (REUTERS)Premium
The logo of the Adani Group is seen on the facade of one of its buildings (REUTERS)

India and Asia's richest Gautam Adani's net worth plunged significantly in just a day after a sharp fall in bonds and stocks of the seven listed Adani group companies that fell between 3% and 7% yesterday after Hindenburg Research, published a report on Adani Group, stating that it is presenting evidence that the Group has engaged in a 'brazen stock manipulation and accounting fraud scheme over the course of decades.'

As per the Bloomberg Billionaires Index, Gautam Adani lost about $6 billion (around 48,600 crore), down nearly 5%, in a day and his net worth currently stands at $113 billion as of January 26, 2023.

What is Hindenburg Research ?

Hindenburg Research on its website says that the company specialises in forensic financial research. It says it has 'experience in the investment management industry spans decades, with a historical focus on equity, credit, and derivatives analysis.'

"While we use fundamental analysis to aid our investment decision-making, we believe the most impactful research results from uncovering hard-to-find information from atypical sources," the company website says.

Why the name Hindenburg Research and people behind it:

Hindenburg Research LLC was founded by Nathan (Nate) Anderson, , CFA, CAIA, in 2017, a student of international business management at the University of Connecticut. He lived in Jerusalem before returning to the United States where he took a consulting job with a financial software company called FactSet and then at broker dealer firms in Washington DC and New York, according to Financial Times.

The name is called Hindenburg Research as it is based on Hindenburg tragedy when a German passenger airship caught fire, killing 35 people.

The company website says, "We view the Hindenburg as the epitome of a totally man-made, totally avoidable disaster. Almost 100 people were loaded onto a balloon filled with the most flammable element in the universe. This was despite dozens of earlier hydrogen-based aircraft meeting with similar fates. Nonetheless, the operators of the Hindenburg forged ahead, adopting the oft-cited Wall Street maxim of “this time is different."

"We look for similar man-made disasters floating around in the market and aim to shed light on them before they lure in more unsuspecting victim," it added.

Track Record:

The company website lists a series of events where the company has researched.

In September 2020, it released “Nikola: How to Parlay An Ocean of Lies Into a Partnership With the Largest Auto OEM in America" that, with the help of whistleblowers and former employees, called out a vast array of alleged lies and deceptions by Nikola in the years leading up to its proposed partnership with General Motors.

"Among dozens of other issues, we pointed out that Nikola’s “In Motion" promotional video for its Nikola One semi was nothing more than the truck being rolled down a hill in the Utah desert, a claim the company later admitted. Nikola Founder and Executive Chairman Trevor Milton promptly resigned from the company. The story garnered attention from mainstream international media, featured in the Wall Street Journal, Financial Times, CNN, Barron’s and CNBC, among others. Both the SEC and DOJ are reported to have investigations into the company following the report," it said.

In June 2020, it wrote about WINS Finance, pointing out that a company subsidiary in China was subject to a RMB 350 million asset freeze which had not been disclosed to U.S. investors. We also pointed out that WINS’ parent, which owned 67.7% of WINS’ equity, had already been declared insolvent in China with no disclosure to U.S. investors. About four months later, in October 2020, NASDAQ delisted WINS specifically due to the undisclosed asset freeze we identified.

In June 2020, it also wrote about Genius Brands, then trading at about $6.86 per share, would soon become a $1.50 stock due to extreme retail euphoria and pending dilution. By the end of July, just under two months later, shares were trading at $1.50, a decline of almost 80%.

It has reports on China Metal Resources Utilization, HF Foods and Riot Blockchain.

Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!

Catch all the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint. Check all the latest action on Budget 2024 here. Download The Mint News App to get Daily Market Updates.
More Less
Published: 26 Jan 2023, 09:15 PM IST
Next Story footLogo
Recommended For You
Switch to the Mint app for fast and personalized news - Get App