Nathan Anderson, the founder of Hindenburg Research, has recently shared insights into the firm's decision to investigate the Adani Group, marking his first public remarks on the matter since the release of the report in January 2023. In an interview with news agency PTI, Anderson explained that the decision was based on “red flags” raised by certain media outlets. According to Anderson, after noticing these warnings, the team at Hindenburg decided to dig deeper into the Adani Group’s financials and corporate governance practices. They followed the evidence that emerged, which eventually led to their comprehensive report. Despite the report’s controversial nature, Anderson affirmed that Hindenburg stands firmly by all its findings, including those related to the Adani Group, calling the research process meticulous and evidence-driven.
The Hindenburg report, which accused the Adani Group of financial misdeeds and stock manipulation, triggered a sharp sell-off in the market, resulting in a loss of over $150 billion in the value of Adani Group companies. While the report caused a significant market disruption, the Adani Group was able to recover a substantial portion of the losses over time. However, the group vehemently denied all allegations, labeling the report as a calculated attempt to damage its reputation. The matter escalated to the Indian Supreme Court, which ultimately ruled that there was no need for further investigation beyond the ongoing probe conducted by the Securities and Exchange Board of India (SEBI).
Throughout the interview, Anderson rejected claims that Hindenburg’s report was an attack on India’s economic progress or growth. He emphasized that Hindenburg Research, as an entity, has always had a positive view of India's economic potential. Anderson stated that the firm believes in the country's future, seeing transparency and strong corporate governance as key factors that could further enhance India’s growth story. He went on to assert that their primary role is to uncover and report on issues of market transparency, regardless of how they might affect specific companies or national economies.
Anderson also addressed a conspiracy theory that had gained traction, which sought to link Hindenburg Research with organizations such as the Organized Crime and Corruption Reporting Project (OCCRP) and billionaire financier George Soros. Anderson dismissed such claims, calling them "goofy conspiracy" theories. He expressed frustration at the fact that, instead of focusing on the extensive evidence presented in the report, critics chose to deflect with baseless accusations. According to Anderson, the firm has always followed a policy of avoiding unnecessary speculation and conspiracy theories, focusing solely on the facts.
In January 2024, Anderson announced that he was shutting down Hindenburg Research, leading to speculation about the reasons behind the decision. Anderson clarified that the closure was not due to legal threats, health concerns, or any personal issues. Instead, he cited the heavy workload associated with running a research-driven firm like Hindenburg. Anderson explained that the personal nature of Hindenburg, which was deeply intertwined with his own identity, made it difficult to hand over control to others. He stated that Hindenburg was essentially synonymous with him, and it was not a business that could easily be transferred to another leader, especially given its focus on deep, investigative research driven by his vision.
Despite shutting down Hindenburg, Anderson was quick to state that he continued to stand by all the firm's reports, including the high-profile one concerning the Adani Group. He reiterated that Hindenburg’s research had always been grounded in a rigorous investigative process, and the firm had full editorial control over all its findings. Anderson was also open to the possibility of his former team continuing their work under a different brand. He expressed support for the team if they wished to start a new venture, though he did not indicate any immediate plans for his personal return to the world of financial research.
Furthermore, Anderson responded to allegations that Hindenburg Research might have shared its reports with hedge funds or other financial entities before their release. He rejected these claims, stressing that Hindenburg has always maintained full editorial control over its research and did not allow outside entities to influence its findings. He pointed out that, like many other U.S.-based short-sellers, Hindenburg's business model involved investing its own capital, often with the help of balance sheet partners, to carry out its research. This model is fully compliant with laws governing financial transactions, and all such investments were disclosed in the firm’s reports.
In closing, Anderson remarked on the role of regulatory bodies in India, stating that Hindenburg's job was to investigate and highlight areas in need of greater transparency, while the subsequent regulatory actions were beyond the firm's control. He indicated that while Hindenburg had no direct influence on regulatory decisions, the firm would continue to operate according to its guiding principles of transparency, investigative rigor, and editorial independence.
