Kerrisdale Capital Management, a company run by Mr. Sahm Adrangi, managed to raise about $100 million dollars from a number of different investors, which will be bet against a single stock. Although it is common for these kinds of investments to be made, the sheer size of this one is definitely abnormal. Sahm Adrangi explains this great fundraising success is due to his company having “struck a chord” with the market.
Although hedge fund managers sometimes raise money in this way, this “co-investment” fund is the first one of its kind. rather than focusing on securities, Kerrisdale plans to use the money for short-selling. The company to be shorted has yet to be revealed, but Kerrisdale has said they will reveal that information in mid-May. According to the same source, the Kerrisdale fund has begun buying stock in the unnamed company to bolster their position.
Although Kerrisdale is a relatively small company based in New York, it manages about $150 million as of July 2017. This is impressive, as the company started in 2009 with about $1 million. Its founder and CEO, Sahm Adrangi, first came into the public eye for exposing a number of fraudulent chinese companies and shorting their stocks. In 2010 and 2011, a large number of chinese companies were exposed by his activities, including China Marine Food Group, China-Biotics, and Lihua International. Some of these companies received stiff penalties for their illicit activity. Before that, Mr. Adrangi received a Bachelor of Arts in Economics from Yale University, and worked for Deutsche Bank in the credit and finance sector.
Kerrisdale, and its CEO Sahm Adrangi, have published a lot of research on a wide variety of different companies as well. In recent years, the company has focused especially on biotechnology, mining, and telecommunications companies. Most of this research has been of an activist nature, working to educate the public about bad investments and social issues. Certainly, this has contributed to the respect Mr. Sahm Adrangi enjoys among his peers. For instance, last year his company exposed a mining company called Northern Dynasty. Northern Dynasty was selling stock in an exploratory mining project in Alaska, referred to as the Pebble Mine. This project was expected to have a very large environmental impact and was opposed by many activists and native tribes. Sahm Adrangi authored a report on this mine, in which he showed potential investors that the project would actually cost more money than it was likely to make. Read This Article for related information.
Activism and investment seem like unlikely bedfellows, but Mr. Adrangi has made the mix work very well.