Hindenburg founder to close short seller behind Adani, Nikola sell-offs

Hindenburg Research's founder said he would disband the firm whose reports sparked heavy selling by investors and investigations by the authorities, wiping billions from the market values of companies including India's Adani Group and US-based Nikola.

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BENGALURU – Hindenburg Research's founder said he would disband the firm whose reports sparked heavy selling by investors and investigations by the authorities, wiping billions from the market values of companies including India's Adani Group and US-based Nikola.

Mr. Nathan Anderson, who started Hindenburg in 2017, cited the toll of the "rather intense, and at times, all-encompassing" nature of the work as the reason for his decision, in a Jan 15 website post.

Short sellers like Mr. Anderson, who managed his firm's own money but not that of others, bet against companies they believe have accounting issues, mismanagement or fraud, which they find usually after a long period of investigation.

Short selling involves borrowing a stock to sell in the expectation the price will fall, then repurchasing the shares and pocketing the difference. Should the price rise, the seller can be exposed to potentially unlimited losses.

Mr. Anderson, who did not immediately respond to a Reuters request for comment, said there was no specific reason for his decision, "no particular threat, no health issue, and no big personal issue".