HOW TALES OF INTRIGUE SINK FIRMS

HINDENBURG, based in New York and founded by activist shortseller Nathan Anderson, hit the headlines in May after publishing a report stating Twitter’s share price could crash by half if Elon Musk walked away from his takeover attempt.

It is one of several research houses specialising in in-depth investigations into companies to uncover wrongdoing or financial discrepancies that can send shares plunging.

In December 2019, US-based Muddy Waters published a report on NMC Health, at that time a FTSE 100 company, questioning its accounts. It sparked a chain reaction that engulfed NMC in scandal and forced it into bankruptcy the following year.

Another fund, London-based Shadowfall Capital, has fired broadsides at some of the capital’s biggest listed firms including fashion giant Boohoo.