NEW DELHI: Hindenburg founder Nathan Anderson said on Tuesday that the firm’s decision to investigate Adani Group came after “red flags” were raised by certain media groups and added that he stood by all the reports and findings.
“We initially saw media articles outlining red flags, took a closer look, and just kept following the evidence,” he said in an exclusive interview to PTI, when asked about the firm’s decision to choose Adani Group.
Responding to claims that the Hindenburg report was against India and its growth story, he said, “We have always believed in India’s potential and view market transparency and strong corporate governance as key factors that can fuel India’s growth story.”
Clearing the air that the firm did not shutting down because of any legal of personal threats, Nate said, “As to why I retired – it is all in the letter (released on January 16 that announced shutting down of Hindenburg) – it is not based on any threat, health issue, personal issue or otherwise.”
‘100% stand by our report’
When asked if he stood by Hindenburg’s reports, particularly those on the Adani Group, Nate said, “We 100 per cent stand by all of our research findings.”
Hindenburg accused the Adani Group of using a network of offshore companies to inflate revenue and manipulate stock prices while accumulating debt. Although the conglomerate strongly denied the allegations, the report initially wiped out over $150 billion from its market value, losses it later recovered over the course of a year.
The matter reached the Supreme Court, which found no need for further investigation beyond the ongoing probe by market regulator Sebi, which had already been looking into certain issues before the Hindenburg report was published.
‘Goofy conspiracies’: Nate on ties with Soros
Responding to the allegations of having ties with OCCRP and George Soros, Nate said, “Of course not, but we have a policy of not feeding into silly conspiracy theories. When the main response to 100+ pages of evidence (presented in the report against Adani Group) is a goofy conspiracy, we view it as a sign that we were right on the mark.”
He dismissed claims of sharing reports with hedge funds saying, “We have always maintained full editorial control over all of our research.”
“As we and many other US-based short sellers have discussed in public interviews for years, our model involves investing our own capital and sometimes also bringing on a balance sheet partner. This is one of the most common business models in our industry, it is fully compliant with all applicable laws, and we disclose this in our reports,” he said.