Hindenburg’s Adani, Icahn calls mark year of prominent bets
Adani Group and Icahn Enterprises Inc. have rounded out another remarkable year for activist short seller Hindenburg Research.
The US firm kicked off 2023 with allegations of accounting fraud and stock manipulation against Indian billionaire Gautam Adani’s conglomerate that led to a market value erosion of more than $150 billion at one point.
Seven of the group’s 10 stocks are still trading in the red since the scathing Jan. 24 report.
Icahn Enterprises, which Hindenburg accused of overvaluing assets, has plummeted nearly 70% since the latter disclosed a short call in a May 2 statement.
These successes mark a string of big hits dealt by the firm founded by Nate Anderson. A scorecard of 14 of the firm’s prominent bets since 2020 shows many of its targets decline once the short position is unveiled.
Shares on average dropped about 9% on the first day, and were down 30% a year later, according to calculations by Bloomberg News.
To be sure, Adani group’s market value has recovered to late-January levels as the conglomerate prepaid debt and lured marquee funds including GQG Partners LLC to boost investor confidence. Still, Gautam Adani’s net worth has shrunk by about $34 billion in 2023, the biggest loss this year on the Bloomberg Billionaires Index.
The group has repeatedly denied Hindenburg’s allegations.
Elliott Investment Management and Carson Block’s Muddy Waters LLC are among short sellers which have also had success in recent years.
Here are some of Hindenburg’s other notable shorts in recent years:
Block (March 2023)
Hot on the heels of the explosive Adani bet that raised Hindenburg’s profile, the short seller released a report against Jack Dorsey-led Block Inc. In its investigation, the firm alleged it found
