Sahm Adgrangi Raises $100 Million through Kerrisdale Capital

Posted in Management, Research on Oct 10, 2017

A New York short seller Kerrisdale Capital Management has raised 100 million dollars from investors to bet against a single stock. This seems to be a new practice by the relatively small company since the company whose stock is being bet against has not yet been revealed. Usually, hedge fund companies raise money towards a particular investment thesis such as buying distressed companies whose stock price and value can be analyzed. However, Kerrisdale Capital Management Chief Investment Officer Sahm Adrangi says that the fact they have raised such a huge amount of money over such a short periods evidence that they have caught the imagination of the alternative community.

Mr. Adrangi explains that they have taken a company which is worth over 10 billion dollars and sought to explain to investors their thesis on it. They are currently preparing a reporting website and video data to try and convince others on their thesis. While the company will be revealed later, Kerrisdale Capital is seeking to establish its position with the enterprise in real time. The fund is now worth an approximated 500 million dollars including the 100 million raised for this short sell. It has a history of betting against companies and taking their case to the public. These positions have often paid off, including the recent short sales on drug companies satellite company Globalstar and Sage Therapeutics and Zafgen. It has had an approximated annual return of 28% over the past five years and is down 7% in 2016 through March.

33-year-old Sahm Adrangi is the chief investment officer at Kerrisdale Capital Management, a New York Hedge Fund. Before founding Kerrisdale Capital, Adrangi worked for Longacre Fund Managemen as an investment analyst. He conducted research and investment analysis for both equity and credit funds at the 1.2 billion dollars worth company. Banking on experience gained working at this firm and many others before that, Sahm Adrangi founded Kerrisdale Capital Management in 2009. The Kerrisdale focuses both on value and special situation investments which are driven by events. Sahm Adrangi has spent the past eight years growing the company, both in size and in reputation, and has made it one of the most respected hedge fund managers in the country.

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