Adani loses billions after short seller report

“These are reputable short sellers. Their track record has been strong, with recent allegations against Nikola causing share prices to fall 40 percent,” said Nitin Chanduka, a Singapore-based analyst at Bloomberg Intelligence.

Hindenburg was instrumental in bringing down Nikola founder Trevor Milton, who was accused by the research firm in 2020 of being built on

Hindenburg was instrumental in bringing down Nikola founder Trevor Milton, who was accused by the research firm in 2020 of being built on “dozens of lies.”Credit:AP

Anderson’s company follows standard procedure for what’s called an activist short: after researching a potential target, Hindenburg bets the stock will go down, then publicly flaunts his research and uses social media to spread the word. Hindenburg’s Twitter account has more than 259,000 followers, while Anderson’s personal address has another 26,500.

Activist shorts pose as watchdogs protecting investors from accounting and managerial misconduct, while the companies they target usually accuse them of market manipulation.

Regulators have often lashed out at short sellers, and the US Department of Justice in 2021 collected information on dozens of investment firms and researchers as part of a wide-ranging hunt for potential trading abuse by short sellers, according to people familiar with the matter. No charges were disclosed as a result of the investigation.

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Hindenburg was not immediately available to comment on his track record. Adani Group’s chief financial officer said the research was a “malicious combination of selective misinformation and outdated, unsubstantiated and discredited allegations”.

Bloomberg

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Brian Lowry

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