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Talk about an interesting business model. "Hindenburg Research prepares an investigation report on a target company by going through its public records, intern
by macmac 3y ago
Talk about an interesting business model.
"Hindenburg Research prepares an investigation report on a target company by going through its public records, internal corporate documents and by talking to its employees. The report is then circulated to Hindenburg's limited partners, who, together with Hindenburg, take a short position in the target company before publicly releasing the report. Hindenburg takes profits if the target company's share price declines"
- justinclift 3y agoFrom memory, they have a reputation for getting things right though.
- macmac 3y agoNothing like having a lot of money riding on it, as an incentive for getting it right.
- fuzzfactor 3y agoLooking for companies filled with something more volatile than the usual hot air. They try and provide the spark to bring them quickly back down to earth in flames. That's why they call it Hindenburg.
- justinclift 3y agoHeh, if only that were always true. ;)
- tehlike 3y ago"talking to employees" Does that not get somewhat on the insider trading angle?
- jsyang00 3y agonot unless they divulge material info I think, it is common for buy-side to talk to mgmt
- 1vuio0pswjnm7 3y agoMore interesting than SillyCon Valley VC, perhaps? These firms have to do their homework. They have to do their _own_ homework; they cannot just copy someone else's. Failure, i.e., being wrong, comes with a high cost. Whereas VC will piggyback on others' investment choices. VC are wrong more than they are right, by a large margin. Failure is low cost. It's like playing the lottery. There is no skill involved. Who has more skin the game. Who takes bigger risks. Questions for the reader.