American short seller firm Hindenburg… This name was in the headlines in the beginning of last year 2023 and why not, after all it had made such a disclosure about Indian billionaire Gautam Adani, who was among the top-3 rich in the world at that time. , that within no time he was out of the list of top 30 billionaires. Now after about 18 months, it is again in the news and the reason is that it has targeted the market regulator SEBI in India and has made serious allegations against its Chief Madhabi Puri Buch and her husband citing their connection with the Adani Group. Let us know how the Hindenburg Report is prepared and how this short seller firm started?
How Hindenburg targeted SEBI?
First of all, let’s talk about Hidenburg’s latest report in which it has targeted SEBI Chairperson Madhabi Puri Buch and her husband Dhaval Buch. So let us tell you that in the report released on Saturday evening, the American short seller firm has said that SEBI Chairperson Madhabi Puri Buch and her husband Dhaval Buch took stake in the funds of Bermuda and Mauritius, which are tax haven countries and these two funds were used by Gautam. Adani’s elder brother Vinod Adani also did it. However, clarifying these allegations, SEBI Chairperson issued a statement on Sunday rejecting them outright. Butch’s side has said that there is no truth of any kind in these allegations. Our life and finances are like an open book.
Nathan Anderson’s company is Hindenburg Research.
The founder of Hindenburg is Nathan Anderson. Nathan started looking for a job after graduating in International Business from the University of Connecticut, America. After this, he started working in a data research company and did research related to investment of money here. While working, he learned the intricacies of data and share market and he understood that share market is the biggest hub of capitalists in the world.
Understand the nuances and create your own company
While working, Nathan Anderson started understanding that a lot of things are happening in the stock market, which is beyond the understanding of common people. It was from here that the idea of starting his own research company and shortchanging the companies by exposing them came to his mind. Moving forward on this, he left his job and started his own company named Hindenburg in the year 2017. The special thing is that he named his research company after the Hindenburg airship accident that took place on May 6, 1937 in Manchester Township, New Jersey.
Hindenburg researches such cases
The main work of this research firm Hindenburg of Nathan Anderson is to do research on stock market, equity, credit and derivatives. Through this research, the company finds out whether any wrongful misappropriation of money is taking place in the stock market. Are big companies mismanaging their accounts for their own benefit? Is any company, for its own benefit, causing loss by wrongly betting on the shares of other companies in the stock market? After thorough research on all these points, the company prepares a detailed report and publishes it.
Nathan Anderson’s source of income
Now let us talk about how Hindenburg earns huge income, then let us tell you that this company of Nathan Anderson is not only an investment firm but also a short selling company. If we look at the profile of the company, it is an activist short seller and earns billions of rupees through this. Let us tell you that short selling is a type of trading or investment strategy. In this, a person buys stocks or securities at a particular price and then sells them when the price is higher, thereby making huge profits.
This is the whole game of short selling
For example, if a short seller buys the shares of a company with the hope that the stock worth Rs 200 will fall to Rs 100 in the future. In this hope, he takes shares of this company as loan from other brokers. After doing this, the short seller sells these borrowed shares to other investors, who are ready to buy them at the price of Rs 200 only. At the same time, when as expected, the company’s shares fall to Rs 100, then the short seller buys shares from the same investors. In times of decline, he buys the share at the price of Rs 100 and returns it to the person from whom he had borrowed it. According to this, he makes a huge profit of Rs 100 per share. Under this strategy, Hindenburg earns money by shorting companies.