Nathan Anderson has earned enough bad publicity by delving into allegations of corporate fraud so much that he knew he could be a persona non grata at a party in New York.
“I don’t lead.” Hello, my name is Nate. I’m a short seller, “says the founder of Hindenberg Research. “This is a great way to get out of a party or social gathering.”
Anderson is renowned for undertaking some of the most popular businesses exposed at the jackpots of recent blank check companies, such as electric truck startups Nicola and Lordstown Motors.
This week he targeted and dropped bombs on the already struggling special-purpose acquisition market. Draft Kings, The sports betting business, which is widely regarded as the catalyst for the boom. Stocks initially fell by more than 11%, but have since recovered significantly.
According to Refinitiv, Spac is in a record year and has raised more than $ 100 billion so far, but Anderson’s repetitive targeting of this sector is unintentional. “We don’t really get started and say’I’m going to see Spacs today’,” he said, adding that his team is “just like following” an obvious scam. It was.
Having built a small team of five full-time employees and a small number of contractors in Hindenburg, the 37-year-old makes a living from the important research he says plays an important role in today’s market.
“Not all stocks deserve to go up in the moon,” he says.
Friendly and sometimes self-deprecating, Anderson grew up in a small town in Connecticut and studied international business management at the University of Connecticut. In search of “more diverse life experiences,” he chose to study abroad in Jerusalem. So he also volunteered for a local ambulance service.
“As an ambulance doctor, you’re doing your best to heal what’s broken,” he says. In Hindenburg, “We can make things better by revealing some of these issues, some of these issues that may be lurking under the surface in some of these companies, some of these industries. I’m trying to see if. “
Returning to the United States, Anderson consulted with financial software company FactSet, managed investment manager client accounts, and realized that “the processes across these companies are virtually the same and not particularly sensitive.” It was.
He then continued his role at broker-dealer companies in Washington and New York, including due diligence on hedge funds and investment opportunities. He began to notice potential murine lectures, “inspired by the combination of fascination and horror,” and began studying them in his own time.
His first big break happened when he tried to hone his research skills. Anderson contacts investigator Harry Marco Poros, who is known to have flagged Bernie Madoff’s Ponzi scheme, they teamed up in a proceeding against a platinum partner, and hedge funds eventually scammed over $ 1 billion. I requested.
Anderson and Marco Poros were not previously identified as alerting seven executives in criminal accusations and several pleading guilty.
“He’s a world-class excavator,” says Marco Poros, whom Anderson considers a mentor. “If there are facts, he often finds them and finds skeletons in the closet.”
Anderson may need to “spend effort to keep the lights on” and sell part of the case to members of a small group of like-minded researchers in exchange for part of the payment. So I increased my budget a little. He initially chased a small company, but then took his step.
“Nikola was his breakthrough in size and notoriety,” says Marco Poros. “He’s on track and companies are afraid of him.”
Anderson’s emergence is at a difficult time for short sellers, who have been brutalized by the longest bull market in history. Even big names like Jim Chanos and David Einhorn are struggling in a relentlessly upward market. Others, including Bill Ackman, have completely stopped betting on businesses.
Especially noisy this year, Reddit’s trade forces emerged, they united to increase stock shortages, and shortage sellers became the number one public enemy. Anderson has been the target of countless posts on the day trader forums, and he has incorporated it all into his journey. “Funding before the meme wasn’t very interesting,” he says.
His particular favorite is a video of the prolific Spac sponsor Chamat Palihapitiya, who published Clover Health, as King Kong, and Hindenburg, who presented important research on the company, as Godzilla. In the clip, “King Kong completely defeated Godzilla’s living tar, and we seemed to be really good at it.”
Other financial experts say they welcome his work, even on the buy side. Tony Cypreos, the founder of an investment adviser who first met Anderson eight years ago, says relatively few people do the same job.
“We offer a very noble service. It’s a big deal if public companies and private funds show that they’re giving false data,” Anderson said.
Hindenburg’s targeted companies don’t feel exactly the same, they disagree or downplay his claim, and some argue that his report is a promotional stunt. I will.
Anderson argues that he isn’t completely sour with a blank check car.
“I’m still open to the fact that there may be a good Spac out there,” he says. “I haven’t seen it yet.”
Hindenburg founder Nathan Anderson acquires Spack
Source link Hindenburg founder Nathan Anderson acquires Spack