Kerrisdale Capital Management recently raised $100 million from investors to bet against a single stock. This was under the tutelage of their C.E.O Sahm Adrangi. The Kerrisdale is a special kind of hedge fund in that it plans to use the money to short the stock of the soon-to-be-unveiled public company. This is a departure from the normal practice of hedge funds which are usually raising money to focus on a specific investment thesis, for example, the restoration of distressed energy companies.
Kerrisdale is a rather small firm based in New York where it conducts most of its operations. The C.E.O recently wrote to the investors informing them of the large amounts of money they raised in a short period, with the company being worth more than $10 billion. Adrangi and Shane Wilson, an analyst, are preparing for the coming campaign on their website.
Kerrisdale manages about $500 million in total and is known to bet against companies such as drug makers – Sage Therapeutics and Zafgen. Statistics show that the company has had a return of approximately 25% over the last five years. Sam Adrangi, who is the founder and chief investment officer, has been instrumental in the success that the company has witnessed since it was founded in 2009. This can be shown by the over 150% increase in the amount of money managed.
Apart from the Kerrisdale, Mr. Adrangi is also known for short selling and publishing research. He made a name for himself by shorting and exposing fraudulent Chinese companies such as the Marine Food Group Lihua Company. Most of the companies he exposed faced enforcement actions from the Securities and Exchange Commission.
In recent years, Kerrisdale has focused in the biotechnology sector, and Mr. Adrangi has published widely on the research. Sahm Adrangi has also taken activism role in several investments such as his involvement with Lindsay Corporation management in 2013.
Mr. Adrangi began his financial career in credit at the Deutsche Bank where he advised creditors’ committees in bankruptcy. He has also been invited to speak in different public forums such as the Sohn Conference. Additionally, Sahm has appeared in interviews on CNBC and Bloomberg.
To Learn More : https://www.linkedin.com/in/sahm-adrangi-3548541