Hindenburg Research Company: Explained

The Hindeburg Research

Nathan Anderson started Hindenburg Research LLC, a New York City-based investment research company with a concentration on activist short-selling, in 2017. The company, which bears the name Hindenburg after the 1937 tragedy, which they describe as a man-made avoidable calamity, publishes reports on its website that accuse corporations of mismanagement and fraud. Among the businesses that have been the focus of their reports are Lordstown Motors, Nikola, Adani Group, Clover Health, and Kandi. Additionally, although holding short positions in the company before issuing reports, these papers defend the concept of short-selling and how it "plays a key role in uncovering wrongdoing and protecting investors".

Hindenburg Operations

By looking through the target firm's public records and internal corporate documents, as well as speaking with its workers, Hindenburg Research develops its investigation report on the target company in six or more months. The limited partners of Hindenburg are subsequently given access to the study, and they decide to short the target firm along with Hindenburg. If the share price of the target firm drops, Hindenburg makes money.

Other initiatives

Hindenburg has also published studies on the geothermal energy company Ormat Technologies, the electric car manufacturer Mullen Technologies, the online sports betting operator DraftKings, the operator of geothermal power plants, and the SOS blockchain and crypto mining company in China. Hindenburg made a $1 million incentive offer in October 2021 in exchange for knowledge on Tether's deposits and how the cryptocurrency is genuinely linked to the dollar. After news of Elon Musk's acquisition of Twitter in May 2022, Hindenburg bought a short position in Twitter, Inc. Following Musk's unsuccessful attempt to cancel the agreement, Hindenburg significantly increased its long position on Twitter, betting against Musk for the acquisition to go through.

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