Comment by Jimmc414

It's 11 people. It's a band breaking up, not Microsoft choosing its fourth CEO.

Short selling is extremely stressful and mindspace-heavy, especially if you're going with a global approach like these guys. It makes sense to exit once you've made your cheese.

Some of the team members clearly want to continue, and have his blessing in it. Still others want to get hired elsewhere too. All of these are normal. The Hindenburg name will carry them far.

Him open-sourcing them (for free) is so that others may continue the fight against unscrupulous market players. That's just his Principles.

What he's doing is the smart thing. The employees are likely worth a few millions and debt-free, while he has made enough to fund a small family office. The smart thing would be to leave the game, especially when as an outsider like him, you don't have the connects to fundraise (which is what most fundmanagers tend to spend most of their time on these days). IIRC even DeepFuckingValue did the same.

Honestly? That feels like a more genuine explanation. Business say they reasons for doing things, but I've not seen a high level decision maker that isn't eventually just "going with his gut."

At least they're honest here.

Even Buffet shutdown his first successful firm in 1969.

Being cautious is good.

It IS possible, that this person is doing it out of passion, rather than a typical idea of a job or firm.

TLDR: Within the realm of possibility, relatively unusual.

Is this a decision to avoid litigation? I’ve seen people post analyses that disprove Hindenburg’s claims. And recently Supermicro’s independent auditors didn’t find the same issues Hindenburg claimed. Is it possible they’ve basically got rich from misleading attacks on stocks and are now shutting down to avoid something bad? Basically cashing out on their short positions?

EDIT: since I am rate limited, here’s my reply to the child comment from peepeepoopoo100

When EY resigned, it was because there was a long list of things that the independent review said needed investigating. But none of the issues had been actually investigated yet. Since then, my recollection is that there have been at least two independent reviews that have been fully completed and confirmed that the financial reporting of the company was accurate. And nothing had to be restated to the SEC, nor has the SEC asked for any changes.

Basically the big 4 auditor jumped off the ship, based on allegations and potential issues and nothing concrete, and they did not stick around to do the actual work they should’ve done. Instead of seeking answers, they made a vague accusation that the company might not be acting with integrity and ethics and left.

>successful organization

Think this type of organization is a bit different. The very nature of their MO means it's only a matter of time before there is a big miss and you get sued into oblivion.

...so bowing out gracefully while ahead seems like a sound move

There’s a promise at the end, we’ll see if it’s kept.

> In May 2022, Hindenburg took a short position in Twitter, Inc. following the announcement of its acquisition of Twitter by Elon Musk. After Musk's attempted termination of the deal, Hindenburg took a significant long position on Twitter, betting against Musk on the acquisition to close.

Something about that individual coming to power along with the other oligarchs? The coming political climate looks to be one where money is more important than the rule of law (even more so than usual), which might be bad news for a business like that.

[dead]

I got the same impression.

I assume they have a good reason to have done it this way and I hope everyone on their team is safe.