Company:Hindenburg Research

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Short description: Short-selling activist firm that publishes reports alleging fraud
Hindenburg Research LLC
Hindenburg Research
TypePrivate
FounderNathan Anderson

Hindenburg Research LLC, commonly known as Hindenburg Research, is an investment research firm with a focus on activist short-selling founded by Nathan Anderson.[1] Named after the 1937 Hindenburg disaster, which they characterize as a human-made avoidable disaster,[2] the firm generates public reports via its website that allege corporate fraud and malfeasance.[3] Companies that have been the subjects of their reports include Nikola,[4] Clover Health,[5] Kandi,[6] Lordstown Motors,[7] and Tecnoglass.[8] These reports also feature defenses of the practice of short-selling and how they "play a critical role in exposing fraud and protecting investors".[9]

Notable research

Nikola report

In September 2020, Hindenburg Research published a report on the Nikola Corporation that included allegations of the company being "an intricate fraud built on dozens of lies" and argued that its founder, Trevor Milton, was responsible for much of the fraudulent activities.[1] Following the release of the report, Nikola’s stock dropped by 40%[4] and a Securities and Exchange Commission (SEC) inquiry was opened.[10] While Milton initially disputed the allegations,[10] he later resigned from his position as Executive Chairman.[11] In November 2020, Nikola stated that they had "incurred significant expenses as a result of the regulatory and legal matters relating to the Hindenburg Report.”[1]

Clover Health report and Chamath Palihapitiya

Hindenburg released a report about Medicare advantage plan Clover Health in February 2021, claiming that the company neglected to inform investors about it being under investigation by the Department of Justice. The report also argued that billionaire stock-promoter and entrepreneur Chamath Palihapitiya neglected in his due diligence and misled investors as he took the company public via special purpose acquisition company.[5] Hindenburg disclosed that it has no short or long positions in Clover.[12] Immediately following its publishing, Clover Health dismissed the accusations in the report and also stated it received a notice from the SEC.[13]

Other efforts

Hindenburg has also issued reports concerning the online betting operator DraftKings,[14] the geothermal power plants company Ormat Technologies,[15] electric car company Mullen Technologies,[16] and a Chinese blockchain and cryptomining firm named SOS.[17]

In October 2021, Hindenburg announced a one million dollar reward for information on how the Tether cryptocurrency is actually pegged to the United States dollar , and for knowledge on Tether's deposits.[18] Hindenburg included that, at the time, they did not own positions in any cryptocurrency.[19]

See also

References

  1. ↑ 1.0 1.1 1.2 "Little Big Shorts: How tiny 'activist' firms became sheriffs in the stock market's Wild West" (in en). https://fortune.com/longform/short-selling-stock-market-bets-hindenburg-viceroy-muddy-waters/. 
  2. ↑ "About us" (in en). https://hindenburgresearch.com/about-us/. "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." 
  3. ↑ "‘They’d Find Fraud, Fraud, Fraud.’" (in en-gb). https://www.institutionalinvestor.com/article/b1mlyjys554sgd/They-d-Find-Fraud-Fraud-Fraud. 
  4. ↑ 4.0 4.1 "Short seller Hindenburg Research renews attack on Nikola (Update)" (in en-US). 2020-09-15. https://www.freightwaves.com/news/short-seller-hindenburg-research-renews-attack-on-nikola. 
  5. ↑ 5.0 5.1 "Hindenburg Research Goes After ‘Wall Street Celebrity Promoter’ Chamath Palihapitiya" (in en-gb). https://www.institutionalinvestor.com/article/b1qf5t2ymwfcl5/Hindenburg-Research-Goes-After-Wall-Street-Celebrity-Promoter-Chamath-Palihapitiya. 
  6. ↑ GmbH, finanzen net. "Chinese automaker Kandi plunges nearly 30% after short-seller Hindenburg accused it of fabricating sales to raise $160 million from US investors" (in en-us). https://www.businessinsider.com/kandi-stock-price-hindenburg-research-accusations-fake-sales-us-investors-2020-12. 
  7. ↑ "Lordstown Motors' shares slump after Hindenburg takes short position" (in en-us). 2021-03-12. https://www.reuters.com/article/lordstown-motors-hindenburg/update-1-short-seller-hindenburg-takes-aim-at-lordstown-motors-shares-slip-idUSL4N2LA3DD. 
  8. ↑ Baccardax, Martin. "Tecnoglass Stock Plunges As Hindenburg Research Issues Short Report" (in en-us). https://www.thestreet.com/markets/tecnoglass-stock-dives-as-hindenburg-research-issues-short-report. 
  9. ↑ "Hindenburg Research Launches Defense of Short Selling". https://www.morningbrew.com/daily/stories/2021/02/04/hindenburg-research-launches-defense-short-selling. 
  10. ↑ 10.0 10.1 Smith, Howard (2020-11-10). "Nikola Reveals SEC and Justice Department Subpoenas in September" (in en). https://www.fool.com/investing/2020/11/10/nikola-reveals-sec-and-justice-department-subpoena/. 
  11. ↑ Boudette, Neal E.; Ewing, Jack (2020-09-21). "Head of Nikola, a G.M. Electric Truck Partner, Quits Amid Fraud Claims" (in en-US). The New York Times. ISSN 0362-4331. https://www.nytimes.com/2020/09/21/business/nikola-trevor-milton-resigns.html. 
  12. ↑ Feiner, Lauren (2021-02-04). "Palihapitiya-backed Clover Health shares fall on critical report by short seller Hindenburg Research" (in en). https://www.cnbc.com/2021/02/04/palihapitiya-backed-clover-health-shares-fall-on-critical-report-by-short-seller-.html. 
  13. ↑ Kovach, Steve (2021-02-05). "Chamath Palihapitiya-backed Clover Health gets notice of SEC investigation" (in en). https://www.cnbc.com/2021/02/05/chamath-palihapitiya-backed-clover-health-gets-notice-of-sec-investigation.html. 
  14. ↑ Pound, Jesse (2021-06-15). "DraftKings stock falls after Hindenburg Research reveals short position" (in en). https://www.cnbc.com/2021/06/15/draftkings-stock-falls-after-hindenburg-research-reveals-short-position.html. 
  15. ↑ Reuters Staff (2021-03-01). "Ormat shares drop after short-seller Hindenburg attacks energy company" (in en). Reuters. https://www.reuters.com/article/us-ormat-tech-hindenburg-idUSKBN2AT2HN. 
  16. ↑ "MULN stock falls further after negative Hindenburg report" (in en). https://www.fxstreet.com/news/muln-stock-falls-further-after-negative-hindenburg-report-202204081259. 
  17. ↑ "Short-sellers take aim at Chinese blockchain firm SOS, shares tumble" (in en-US). https://finance.yahoo.com/news/hindenburg-short-china-based-blockchain-183900001.html. 
  18. ↑ Venkataramakrishnan, Siddharth; Oliver, Joshua; Smith, Robert (2021-10-20). "Short-seller Hindenburg sets $1m ‘bounty’ for details on Tether’s reserves". Financial Times. https://www.ft.com/content/5b62d83d-c5f0-4586-b68c-b6facaba83a4. 
  19. ↑ "Hindenburg Research Announces $1,000,000 Bounty For Details On Tether’s Backing". 2021-10-19. https://hindenburgresearch.com/tether/. 

External links





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