Hindenburg Research

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] The firm generates public reports via its website that allege fraud and malfeasance.[2] Companies that have been the subjects of their reports include Nikola,[3] Clover Health,[4] Kandi,[5] and Lordstown Motors.[6] These reports also feature defenses of the practice of short-selling and how they "play a critical role in exposing fraud and protecting investors".[7]

Hindenburg Research LLC
Hindenburg Research
TypePrivate
Founded2017 Edit this on Wikidata
FounderNathan Anderson
Number of employees
5 (2020) Edit this on Wikidata
Websitehindenburgresearch.com Edit this on Wikidata

The company is named after the 1937 Hindenburg disaster, which they consider a man-made avoidable disaster.[8]

Nikola reportEdit

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%[3] and a Securities and Exchange Commission (SEC) inquiry was opened.[9] While Milton initially disputed the allegations,[9] he later resigned from his position as Executive Chairman.[10] 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 PalihapitiyaEdit

Hindenburg released a report about Medicare advantage plan Clover Heath 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.[4] Hindenburg disclosed that it has no short or long positions in Clover.[11] Immediately following its publishing, Clover Health dismissed the accusations in the report and also stated it received a notice from the SEC.[12]

Other reportsEdit

Hindenburg has also issued reports concerning the online betting operator DraftKings,[13] the geothermal power plants company Ormat Technologies,[14] and a Chinese blockchain and cryptomining firm named SOS.[15]

See alsoEdit

ReferencesEdit

  1. ^ a b c "Little Big Shorts: How tiny 'activist' firms became sheriffs in the stock market's Wild West". Fortune. Retrieved 2021-02-07.
  2. ^ "'They'd Find Fraud, Fraud, Fraud.'". Institutional Investor. Retrieved 2021-02-07.
  3. ^ a b "Short seller Hindenburg Research renews attack on Nikola (Update)". FreightWaves. 2020-09-15. Retrieved 2021-02-07.
  4. ^ a b "Hindenburg Research Goes After 'Wall Street Celebrity Promoter' Chamath Palihapitiya". Institutional Investor. Retrieved 2021-02-07.
  5. ^ 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". markets.businessinsider.com. Retrieved 2021-02-07.
  6. ^ "Lordstown Motors' shares slump after Hindenburg takes short position". www.reuters.com. 2021-03-12. Retrieved 2021-03-12.
  7. ^ "Hindenburg Research Launches Defense of Short Selling". Morning Brew. Retrieved 2021-02-07.
  8. ^ "About us". hindenburgresearch.com. Retrieved 25 March 2021. 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.
  9. ^ a b Smith, Howard (2020-11-10). "Nikola Reveals SEC and Justice Department Subpoenas in September". The Motley Fool. Retrieved 2021-02-07.
  10. ^ Boudette, Neal E.; Ewing, Jack (2020-09-21). "Head of Nikola, a G.M. Electric Truck Partner, Quits Amid Fraud Claims". The New York Times. ISSN 0362-4331. Retrieved 2021-02-07.
  11. ^ Feiner, Lauren (2021-02-04). "Palihapitiya-backed Clover Health shares fall on critical report by short seller Hindenburg Research". CNBC. Retrieved 2021-02-07.
  12. ^ Kovach, Steve (2021-02-05). "Chamath Palihapitiya-backed Clover Health gets notice of SEC investigation". CNBC. Retrieved 2021-02-07.
  13. ^ Pound, Jesse (2021-06-15). "DraftKings stock falls after Hindenburg Research reveals short position". CNBC. Retrieved 2021-06-21.
  14. ^ Reuters Staff (2021-03-01). "Ormat shares drop after short-seller Hindenburg attacks energy company". Reuters. Retrieved 2021-03-02.
  15. ^ "Short-sellers take aim at Chinese blockchain firm SOS, shares tumble". finance.yahoo.com. Retrieved 2021-03-02.

External linksEdit