SahmAdrangi through Kerrisdale Capital Management raised $100 million meant to shot a stock that would hit the market in May 2016. The co-investment fund by Kerrisdale is unique and enables the firm to profit from betting against a stock. SahmAdrangi and his team published all the insights available on their websites, videos, and reports to encourage investors to join their course. The targeted company was the worth about $10 billion then.
Kerrisdale Capital management has made a name shorting stocks. In the past Kerrisdalehas short stocks of Zafgen, Globalstar, and Sage Therapeutics. Currently, the firm manages assets worth over $ 150 million. So far, the Kerrisdale has realized up to triple digit earnings through stock shorting. Mr. Adrangi, founder and Chief investment officer at the company, has led the company since 2009 when it was a $1 million start-up. Sahm’s objective is to profit through uncovering fraud companies. Through his initiative www.ChineseCompanyAnalyst.com founded in 2010, Sahm highlighted Chinese reverse mergers that entered the North America through listed entities. As more people spoke out about the rot including cooked books, Adrangi dropped his alias and begun publishing through Kerrisdale Capital. The Yale economics graduate raised funds from friends, supporters, and family to boost his enterprise.
In the first year, Kerrisdale raised the alarm on Chinese Education Alliance (CEU) that listed on the Canadian and US stock exchanges through underhand tactics. CEU reported revenues of up to $22 million earned through offering education tutorials to Chinese students. The figure did not add up when compared to similar players in the market plus the CEU website was not fully functional. Using an informant based in China, Sahm collected enough evidence including the revenue statements submitted to the local authorities. He bet 20% of the fund’s capital against CEU and subsequently released Kerrisdale reports through the website. CEU stock had plunged 40%. By the close of the 2012 financial year, Kerrisdale registered 30% and ranked among the top on the Barclays Hedge Fund rankings.
Mr. Adrangi began as a Leveraged finance analyst at Deutsche Bank before moving on to Chanin Capital Partners and later the Longacre Fund Management. He also worked at Globe and Mail in Toronto as a journalist. Apart from being an investment analyst, Sahm is a writer, an activist, and speaker.