Hindenburg Research, the influential short-selling firm that rattled global markets with high-profile exposés of companies like Adani Group and Nikola Corp. NKLA, announced its closure Wednesday after a seven-year run that reshaped modern activist investing.
What Happened: Founder Nathan Anderson, who started Hindenburg in 2017, cited personal reasons for disbanding the 11-person firm, marking the end of an era that saw the boutique research shop take on corporate giants and billionaires worldwide.
The firm’s investigations led to nearly 100 civil and criminal charges against various executives and companies, according to Anderson’s farewell note. One of its most impactful reports targeted India’s Adani Group in 2023, wiping more than $100 billion in market value and eventually leading to U.S. prosecutors indicting founder Gautam Adani for alleged fraud.
Hindenburg’s methodical approach to exposing corporate misconduct first gained prominence in 2020 with its report on electric vehicle maker Nikola. The investigation revealed that the company had staged a video of its electric truck rolling downhill to appear self-powered, ultimately leading to founder Trevor Milton‘s four-year prison sentence for fraud.
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Why It Matters: The firm’s departure follows a broader trend of high-profile short-sellers stepping back, including Jim Chanos, known for exposing Enron‘s fraud, who closed his hedge fund in 2023. Unlike traditional investment firms, Hindenburg managed only its own capital while publishing detailed research that often triggered regulatory investigations and market selloffs.
Recent targets included Carl Icahn‘s Icahn Enterprises LP IEP and Block Inc. SQ, led by Twitter co-founder Jack Dorsey. In its final report on Jan. 2, the firm accused Carvana Co. CVNA of accounting irregularities, though the company denied these allegations.
Anderson plans to spend the next six months documenting Hindenburg’s investigative methods, potentially enabling a new generation of market watchdogs. “My hope is that someone embraces the same passion, learns the craft, and finds the confidence to shed light on subjects that need it,” he wrote.
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Photo courtesy: Hindenburg Research
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