Kerrisdale Capital Management, a company owned by SahmAdrangi managed to raise about $100 million through investors to be used in betting against a single stock. Hedge fund managers always raise funds to channel into a given investment thesis like residential mortgage securities or recovery of failing energy companies. Contrastingly, Kerrisdale, which is a relatively smaller entity, is planning to use the money raised in shorting the stock of a public company that is yet to be unveiled.
Having their eyes on the forthcoming campaign Adrangi and Shane Wilson, who is a Kerrisdale analyst, are working on a website, report, video and more to convince others into accepting their thesis. The target company was set to be disclosed in mid-May. The fund had already started buying stock as a way of establishing a position in the company that was to be named. It appears that this information was just leaked to the public because the company still wanted to hold it as a top secret.
Now managing near $500 million, Kerrisdale has had a history of putting bets against companies and making the case public. Some of the recent activist short position of Kerrisdale includes satellite company Globalstar and two drug makers, Sage Therapeutics and Zafgen. Over the past five years, Kerrisdale earned average returns of 28% from the hedge fund. It bets both against and for company stocks. In 2016, the fund went down by a mere 7%.
SahmAdrangi is the founder of Kerrisdale Capital Management. Prior to this, he worked at Longacre Fund Management as an investment analyst. While working at Longacre, Mr. Adrangi performed investment research and analysis for both equity fund and credit fund. Before joining Longacre, he worked at Chanin Capital Partners within the bankruptcy restructuring group. Here Mr. Adrangi advised on various matters including Chapter 11 and out-of-court bankruptcy restructuring.
Earlier on, Mr. Adrangi was part of Deutsche Bank within the leveraged finance group. He helped syndicate and structure non-investment grade bank debit as well as high yield bonds which include debt refinancing, Chapter 11 exit financing, and leveraged buy-out financing. SahmAdrangi attended Yale University and graduated with a bachelor’s degree in Arts in Economics.