Meet Hindenburg’s Nate Anderson, the fearless short-seller shaking billionaires | CPT PPP Coverage

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Nate Anderson, a researcher at the helm of Hindenburg Research, is rewriting the playbook of short-sellers in 2023. In a matter of months, Anderson has sent shockwaves through the portfolios of high-profile billionaires like Gautam Adani, Jack Dorsey, and Carl Icahn, while erasing staggering amounts from their companies’ market values.

Anderson’s audacious moves are bucking the trend of retreating short-sellers, who often fear legal backlash, short squeezes, and regulatory probes. He’s risking it all, including potential civil suits, physical threats, and even arrest.

Surprisingly, despite his daring exploits, Anderson’s profits from these maneuvers are believed to be relatively modest. For instance, his report challenging the valuation of Icahn Enterprises resulted in a swift US$17 billion loss in the billionaire’s wealth, but the combined gains for all investors shorting the stock totaled about US$56 million, according to data from S3 Partners.

Hindenburg’s approach deviates from the herd, as Anderson bets against companies in a unique manner. He shorted Adani’s bonds and likely secured smaller gains than anticipated due to the complexity of the bond market. Even his attack on Dorsey’s Block venture might have yielded more moderate profits based on market data.

While money isn’t his primary motivator, Anderson’s determination lies in exposing perceived corporate misconduct and toppling overvalued firms. This unconventional mindset aligns with the classic ethos of a short-seller: unearthing flaws in the world and calling them out.

Anderson’s actions have thrust him into the spotlight this year. He caused ripples by targeting the Adani Group, causing a rapid drop in the value of Adani Enterprises. His short on Block led to a significant tumble, and his accusations against Icahn Enterprises saw the stock plummet by as much as 59%.

Although the companies targeted in Hindenburg’s reports dispute the claims vehemently, Anderson’s influence on stock prices is undeniable. Since 2020, the firm has knocked down about 30 companies’ stock prices by an average of 15% the day following their reports.

Despite any subsequent recovery, the stocks remain lower than before Hindenburg’s reports. This audacious approach to short-selling continues to be controversial, and the practice has come under scrutiny for potentially manipulating markets. Yet, Anderson remains an outlier in a field that has seen many retreats.

While he may not have amassed the profits of Wall Street giants, Anderson’s bold moves are reshaping the landscape of short-selling and keeping even the most powerful tycoons on their toes.