Information coming from a reliable source reveals that Sahm Adrangi of Kerrisdale Capital Management has raised a whopping $100 million from investors to bet against an unnamed company.
It is not uncommon for managers of hedge funds to raise funds for investment opportunities. Such funds could be invested in the recovery of distressed energy companies or any business opportunity that offers a high return on investment. But Kerrisdale has a different intention for its newly raised fund; the New York-based firm plans to use this fund to short the stock of a public company that is soon-to-be-unveiled.
In an email written to investors, Adrangi revealed how much funds he had raised, which he believed was a testament to the authenticity of his investment thesis. Adrangi also revealed that the market capitalization of this unknown company was north of $10 billion. The email equally disclosed the strategies Adrangi and Shane Wilson, an analyst at Kerrisdale, plan to use to convince more investors of the theory. These strategies include report, website, video etc.
According to the source of the story, the identity of the company will be revealed by the middle of May. The source had spoken on the condition of anonymity considering the fact that the information was not yet intended for the public. The hedge fund had since begun making preparation to take a strong position in this mystery company, this included buying of stocks.
Kerrisdale which has over the years built a reputation for betting against companies now has a financial portfolio worth approximately $500 million. Some of the companies that it has bet against in the recent past include satellite company Globalstar and Sage Therapeutics, a company with a specialty in drug manufacturing.
The source also revealed that in the last five years, Kerrisdale has enjoyed an average annual return of approx. 28%. Although its current and most recent position is that of betting against a company, Kerrisdale also bets for companies that it believes worth it.
Mr. Adrangi, who is the founder and CFO of Kerrisdale Capital Managment founded the company in 2009 with less than $1 million. The fund has since then grown. As at July 2017, the firm manages funds worth $150 million. Mr. Adrangi holds a Bachelor degree in Economics from Yale University. He began his career at Deutsche Bank and also spent years working at Longacre Management.
Mr. Adrangi has built a reputation for short selling and publishing research. His first major short was of Chinese companies, some of which include China Marine Food Group, Lihua International, and China-Biotics. Some of his area of focus includes the Biotechnology sector, the Mining sector, and the Telecommunication sector.
After the publication of my piece titled An Ode To Those Who Wander I had a chat with a Wall Street Bond Trader who eventually turned hedge fund credit portfolio manager on the issue of GNC Holdings, Inc. This piece is a brief summary of his 12 years run on Wall Street.
After graduating from Penn State, he was able to secure an internship at Merrill Lynch credit desk. He spent three more years at the firm trading credit before moving to Longacre, the $3billion hedge fund. His time at Longacre overlapped with that of Sahm Longacre, the CFO, and founder of Kerrisdale Capital Management. After Longacre, he moved over to Paulson and Co. He later became Credit PM at Bowery Investment Management.
In June of 2015, he made a life-changing decision and quit Wall Street, citing long hours and the high cost of living in NYC, amongst other things.
Read More: www.crunchbase.com/person/sahm-adrangi