Meet Sahm Adrangi, the Young Man Who Has Changed the Face of Hedge Funds

Posted on October 10, 2017

Someone familiar with Kerrisdale Capital Management told Reuters that the company had raised money from investors to bet against a single stock. Mostly, hedge fund managers raise money to focus on an individual investment thesis such as recovery of residential mortgage-backed securities or energy companies. This wasn’t the case with the new co-investment fund, as it seemed to be the first of this kind. Kerrisdale is a relatively small firm that plans to spend the money to short the stock of a yet -unveiled public company.

Adrangi said that they had raised a substantial amount of capital within a very short duration. They had also taken a firm worth $10 billion and had strived to make everyone understand the particular insights they had about. Shane Wilson and Adrangi are both Kerrisdale analysts who have set their eyes on the upcoming campaign. They are working on a video, report, website to convince other investors of their project. The targeted company would be launched in mid-may and the fund had begun purchasing stock to establish its position in the company, whose name had not disclosed yet.

Kerrisdale has been betting against companies in the past and is now ready to take its case public. The fund has recently short on Zafgen, Satellite Company Globalstar, and Sage Therapeutics. Kerrisdale now manages around $500 million, inclusive of the newly raised money. Its main hedge fund bets both for and against company stocks and has made an annual return of around 28% over the last five years. According to that person, the fund went down for about seven percent through March 2016.

Background Information of Sahm Adrangi

Sahm Adrangi is a Canadian born investor and the owner of Kerrisdale Capital. Sahm has grown this hedge fund from a start-up of $1 million to a $200 million investment. In June 2010, Adrangi started as a hedge fund investor behind the name www.ChineseCompanyAnalyst.com.

Sahm had his focus on Chinese companies that had used crooked means into the North American bourse with fake entities. He realized that all these companies were frauds, and he could make money out of exposing them but keeping his identity anonymous. He would send spies to investigate about these Chinese companies and then bet on them regarding on the feedback. Kerrisdale grew on this means and made a lot of gains.

To Learn More : https://seekingalpha.com/article/4052332-conversation-former-hedge-fund-analyst-long-shares-gnc

Categories: Investment, Management


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