Billionaire investor Bill Ackman praised Hindenburg Research‘s contributions to capital markets following the influential short-seller’s unexpected closure, highlighting the firm’s crucial role in exposing corporate misconduct during its seven-year run.
What Happened: “This is a great letter from the founder of Hindenburg Research,” wrote Ackman, CEO of Pershing Square Capital Management, on X. “Short selling is really hard. Done well, when the research is shared publicly, it is a very important contribution to the proper functioning of the capital markets.”
The closure announcement triggered market reactions across companies previously targeted by Hindenburg, with India’s Adani Group seeing its listed entities gain over $5.9 billion in market value on Thursday. New Delhi Television Ltd., an Adani-owned media company, surged 13% on Indian exchanges.
Founded in 2017 by Nathan Anderson, Hindenburg gained prominence after its 2020 investigation into Nikola Corp. NKLA revealed the electric vehicle maker had staged a product demonstration video. The expose led to founder Trevor Milton‘s conviction and four-year prison sentence for fraud.
“The shut down of Hindenburg Research is a big loss to the field. They have done some great work, which I have admired from a distance as we don't short stocks,” Ackman wrote.
A user on X asked Ackman about shorting Herbalife Ltd HLF, to which he replied, “We retired from the short selling world after HLF.”
Why It Matters: The firm’s most impactful investigation targeted India’s Adani Group in 2023, erasing more than $100 billion in market value and prompting U.S. prosecutors to indict founder Gautam Adani for alleged fraud. Hindenburg’s reports sparked nearly 100 civil and criminal charges against various executives and companies.
Anderson cited personal reasons for disbanding the 11-person firm. His departure follows other prominent short-sellers like Jim Chanos, 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.
The firm’s final report on Jan. 2 targeted Carvana Co. CVNA, alleging accounting irregularities, which the company denied. Anderson plans to spend six months documenting Hindenburg’s investigative methods to guide future market watchdogs.
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