Nearly $100 million has been raised by Kerrisdale Capital Management, a company owned by SahmAdrangi. This money was collected from investors to be used in betting against s single stock. This fund is seemingly the first of its kind. At times, hedge fund managers do raise money to be used in a specific investment thesis, which may include residential mortgage-backed securities among others. Kerrisdale, however, is planning to use this fund to short the stock of a public company that is yet to be unveiled. Kerrisdale has been for a long time now known for putting bets against companies and making public such cases. Some of its recent targets have been Zafgen and Sage Therapeutics, both of which are drug makers, as well as Globalstar, a satellite company. Its main hedge fund has always averaged a yearly return of about 28% in the last five years.
Sahm, the founder of Kerrisdale Capital Management, is also the Chief Investment Officer of this company. He has always been at the center of decision making processes in this firm since it was founded in 2009. SahmAdrangi used less than $1 million in launching this venture, but as of July 2017, the company was managing well over $150 million. He specializes in publishing and short selling research.
He first came to limelight when he short and exposed fraudulent Chinese companies like China-Biotics, China Marine Food Group, and Lihua International among others in 2010 through to 2011. Many of Adrangi’s targets, including ChinaCast Education Corp and China Education Alliance, were thoroughly checked by Securities and Exchange Commission. Kerrisdale has since developed expertise on specific sectors, and Mr. Adrangi appears to be focusing on such areas of late.
Deutsche Bank is the place where Adrangi’s financial career in credit began. Here he used to perform leveraged loan debt and high-yield financings. He then moved to Chanin Capital Partners where he was responsible for advising credit committees on matters to do with out-of-court restructuring and bankruptcy. He has also worked at Longacre Management. Mr. Adrangi is a graduate of Yale University from where he acquired a B.A. in Economics.