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Does Hindenburg’s Anderson Know What He’s Getting Into?
On Thursday, I characterized mainstream financial media coverage of the Gautam Adani "fraud" allegations as akin to click-bait. And make no mistake: That's an accurate portrayal.
The Hindenburg (no relation) short is the kind of story that can become self-fulfilling, and that's the best kind of story if you're in the financial media business. Something causes a selloff today, breathless coverage amplifies the price action, that price action becomes tomorrow's coverage and in cases where the ini
No way I would have been so brazen when running a big short position which “the authorities” did not welcome.
This IS pretty amazing in that respect.
Back in the 1980s, despite keeping my head down and treading quietly, I tangled with three Asian central banks. They always won, even in a case where my shenanigans actually supported the CB’s goal of seeing off specs pushing for a devaluation.
I never felt physically threatened, but I recall I once had some quiet worries flying into KL not long after a scrap with their central bank.
This looks way riskier. Our fearless leader mapped out Modi’s history and impunity really well. Anderson might as well as gone out and targeted some casino company controlled by a triad group.
If Anderson is lucky, it’ll be no worse than what a friend told me happened when he worked for a major international fund company. He was posted to Jakarta. When the Asian crisis started to send markets much lower, a wealthy client came calling, accompanied by two large men who must have been suffering from an eye problem since they were both wearing mirrored sunglasses. He wanted his money back. No, not the current value. He wanted the whole amount he invested back.
Please pardon my ramblings. I recently turned 70 and am becoming a stereotype.
Isn’t “short and distort” illegal? At least in the US?
It’s not that he’s necessarily “distorting” anything. That’s not for me to decide. Forensic short-selling isn’t my cup of tea. In my experience, making money is too easy to bother oneself with all the baggage that goes along with high-profile shorts. My point here is that this isn’t like shorting some multi-level marketer selling milkshakes or some EV company based in America. As noted repeatedly in the article, I don’t know the first thing about Anderson, so he could be well-apprised of all this. But if he’s not, he should be aware of the extent to which he’s shorting an EM oligarch who’s close personal friends with a nationalist ideologue who runs an emerging superpower. That’s… well, it’s that. Whatever that means to you.
Clarity achieved. Merci.
This drama continues to play out. Adani’s firms have posted tens of millions in extra margin and now “late buyers” appearing to fully subscribe a $2.5 billion share issue. I’d wager that the authorities “gently suggested” that anyone needing government approvals or licenses would be wise to step up and show their support for a national champion.
wow…thanks for posting the update, D…
Wow, this thing has Indian markets teetering on the edge.
We’ve been wondering how the firm(s) who took the other side of Hindenberg’s trades. Hey, West Coast Stoic, how would you have priced them?