Short-seller Hindenburg Research to be disbanded, says founder

Hindenburg Research, the United States-based short-seller known for its investigative reports on several business entities such as the Adani Group, will be disbanded, its founder Nate Anderson said on Wednesday.

“As I’ve shared with family, friends and our team since late last year, I have made the decision to disband Hindenburg Research,” Anderson, who started the firm in 2017, said in a statement.

“The plan has been to wind up after we finished the pipeline of ideas we were working on,” he said. “And as of the last Ponzi cases we just completed and are sharing with regulators, that day is today.”

Short-selling entails borrowing a stock to sell it with the expectation that its price will fall. The equity shares are then repurchased at a lower price to profit from the difference.

However, Hindenburg Research did not manage client funds like other short-selling firms but bet against companies that it suspected of accounting irregularities, fraud or mismanagement. This was done after conducting an investigation and publishing reports about such suspected misconduct.

Anderson said that there was no specific reason for disbanding Hindenburg Research. “No particular threat, no health issue, and no big personal issue,” the statement said. However, he highlighted that the toll of the “rather intense, and at times, all-encompassing” nature of…

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