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Nate Anderson on January 6, 2023 in New York. Anderson exposes corporate fraud and Ponzi schemes through his company Hindenburg Research.
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Hindenburg Research, a new research and investment firm that made its name with several successful short bets, is closing, founder Nate Anderson announced Wednesday.
“As I have shared with family, friends, and our team since late last year, I made the decision to dissolve Hindenburg Research. The plan was to end after we finished the portfolio of ideas we were working on. And as of “In the latest Ponzi cases that we just completed and are sharing with regulators, that day is today,” Anderson wrote in a note posted on the company website.
Anderson founded Hindenburg in 2017, and the firm has since released negative research reports on dozens of companies. One of Hindenburg’s first high-profile reports was published in 2020 and focused on Commissioning of the Nikola vehicle. Part of the report included an accusation that Nikola had faked a truck’s autonomous capabilities in a video, which the The company later admitted. Nikola’s founder, Trevor Milton, was later sentenced to four years in prison.
Many of the targets of Hindenburg’s reports were smaller companies. The firm has also gone after companies main financial figuresincluding Carl Icahn’s Icahn Companies LP and the business empire of Indian billionaire Gautam Adani.
The most recent report filed by the company was on January 2 about the auto retailer. Caravanwhom he called “father-son” accounting scam forever.” In a statement, Carvana called the company’s report “intentionally misleading and inaccurate.” Shares fell more than 11% the day after Hindenburg released its report, but have since recovered.
Hindenburg was a short seller and research house. This means that the firm was placing bets against the companies it was investigating, putting it in a position to profit if stocks fell. As Hindenburg’s reputation grew, some stocks experienced immediate negative reactions after the reports were published.
It is unclear how much money Hindenburg made from his short bets.
Hindenburg’s rise came at a time when the controversial practice of short selling was losing popularity elsewhere. The meme stock craze of 2021 pitted retail investors against hedge funds, causing some professional investors to shy away from short selling. Federal officials have also been investigating other short sellers in recent years, including the Justice Department that hit Citron. Andrés Izquierda with securities fraud charges last year.
