Hindenburg’s research revealed a short position against Carl Icahn’s business empire this week.
Icahn Enterprises dropped 20% on the day the short seller released his shock report.
From India’s Adani conglomerate to EV company Nikola, here are Hindenburg’s biggest bets.
Hindenburg’s research made headlines this week when it announced a short position on billionaire Carl Icahn.
Active investor publish a report Tuesday accused Wall Street legend Icahn Enterprises of using inflated asset values and being run as a Ponzi scheme.
Hindenburg’s latest major short sale follows a high-profile bet against Indian conglomerate Adani and Jack Dorsey’s digital payments firm. Block it was done earlier this year.
Here are some of the biggest short-seller bets of the past three years.
1. Nikolai Corporation
Shares fell 11% in just one day and were at last tested to just $0.9 – 95% below where they traded during the week Hindenburg first revealed its short position.
Company founder Trevor Milton is also convicted of fraud in October 2022 after he was found to have lied about Nikola’s technology to boost its stock price, as Hindenburg had alleged two years earlier. He will be sentenced in June 2023.
2. Clover Health
Hindenburg’s next high-profile target is a Medicare Advantage insurance provider clover healthwhich it hit just a month after listing on Nasdaq.
The short seller said in a Report published in February 2021 that Clover – as well as “Wall Street fame promoter” Chamath Palihapitiya, who took the company public through a SPAC merger – misled investors in the lead-up to the listing by failing to notify them that the Justice Department was investigating it.
Shares of Clover fell 8% on the day Hindenburg released his report and, like Nikola, have fallen about 95% since the short seller made the first attack.
3. Draft Kings
Activist investors have questioned the sportsbook’s valuation relative to its rivals and also allege that Bulgarian firm SBTech, which they merged as part of its own SPAC listing, has generated substantial revenue from dubious gambling activities in overseas markets, including Asia.
Shares of DraftKings were down 4% on Hindenburg’s report day and have fallen another 55% since then, trading at just under $22 at last check.
Elon Musk bids to own Twitter for $54.2 a share in April 2022 — and a month later, Hindenburg reveal a short position in the social media giant.
Activist investors predict that Musk will be able to renegotiate that deal for a lower price after Twitter posted poor quarterly results and the world’s second-richest person said he would sell a 9.2% stake. existing shares if his acquisition offer is not accepted.
Hindenburg closed the short position just eight days later, when the stock dropped to just over $35. It then announced a “significant buy position” on Twitter in June, betting that Musk will fail in his attempts to back out of the deal though its share price has fallen even further.
Musk then changed his mind again in October and bought Twitter at an initial deal price of $54.20 a share, at which point Hindenburg sold all of his stock.
5. Adani . Corporation
Hindenburg made headlines again in January of this year when it was revealed that they were shorting Adani Group.
The short seller said that the Indian conglomerate, controlled by billionaire tycoon Gautam Adani, had “engaged in a scheme of stock manipulation and blatant accounting fraud that spanned decades.”
Share prices of listed Adani companies tumbled following Hindenburg’s report, while Adani’s own assets plummeted $58 billion in 2023 due to the stock market sell-off, according to the report. Bloomberg Billionaire Index.
Since then, activist investor and later Adani have traded even more, with Adani giving a 413-page response calling Hindenburg the “Madoffs of Manhattan” and Hindenburg replying that “fraud is fraud, even if it is done by one of the wealthiest individuals in the world.”
Block’s shares fell as much as 22% on the day the report was published but have been mostly flat since then, with the tech company dismissing the claims and saying it will pursue legal action through Securities and Exchange Commission.
7. Icahn Enterprise
Hindenburg took aim at its latest target this week, knocking down Wall Street legend Icahn’s holding company Enterprise Icahn (IEP), which it said used inflated asset valuations and “ponzier-style economic structure” to move funds from new investors to older ones.
Shares of Icahn Enterprises fell 20% on the reporting date, wiped out about 10 billion dollars from Icahn’s personal property.
Icahn immediately hit back at the short seller, saying he supported the IEP’s public disclosure.
“We believe the self-service short-selling report published today by Hindenburg Research is intended solely to generate profit from Hindenburg’s short position at the expense of long-term unit holders of the IEP,” he said in a statement. declare.
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