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US short-seller Hindenburg Research said that it made $4.1 million in revenue through gains made by shorting of Adani securities by its client. This will hardly break even considering the costs of producing the research, it said, adding, “We have made ~$4.1 million in gross revenue through gains related to Adani shorts from that investor relationship.” Additionally, the firm earned around $31,000 from its own short position on Adani US bonds, which was a small stake.
“Net of legal and research expenses (including time, salaries/compensation, and costs for a 2-year global investigation) we may come out ahead of break even on our Adani short,” it said.
The blog highlighted that media reports previously suggested that Hindenburg had multiple investor partners who collectively made hundreds of millions in gains. However, the SEBI show cause notice clarified that Hindenburg only had one investor relationship for the Adani thesis, which aligns with the firm’s typical approach.
Despite the financial outcome, which might break even after accounting for legal and research expenses, Hindenburg emphasised that their work on Adani remains the most fulfilling. The blog noted that the research was never financially justified and carried significant personal risk, yet it stands as the work they are most proud of.
“But, to date, our research on Adani is by far the work we are most proud of,” it said, adding, “The incentives are clear: The gains from fraudulent activities outweigh the small risks of a potential ‘slap on the wrist’ fine from regulators. And brd on the hundreds of tips and leads we received following the Adani report, Adani is by no means the only lurking and ongoing issue Sebi has failed to address.”
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