As Kerrisdale Capital Management’s founder, Sahm Adrangi is responsible for roughly $100 million in investments, and he is betting on just one stock. The co-investment fund is new for Kerrisdale, and it may be the only one of its kind at present. When hedge fund managers begin raising money, it is usually for a specific investment strategy. This can be anything from residential backed mortgage securities to recovering energy companies experience difficult times.
Sahm Adrangi has a very different strategy, and he is going to use the funds for shorting the stock of a public company that has not been unveiled at this time. In an email he wrote, he stated there was a significant amount of money raised a relatively short time period. He believes his means the alternative community is in agreement with his plans. Sahm Adrangi spoke of the $10 billion company they have taken, and explained how he was trying to make his insights regarding the deal understood by everyone.
As an analyst with Kerrisdale, Shane Wilson is working with Sahm Adrangi on the campaign. They are attempting to explain their thesis using reports, websites and video. The expectations are that come May, the company they have targeted will be revealed. This information came from a source insisting on anonymity due to the fact the public is not yet intended to have this information available. According to the email, stock was purchased by the fund so a position could be established regarding the company in question.
Sahm Adrangi manages roughly $500 million through Kerrisdale. This figure includes the funds raised for the new investment. During the history of the company, there has been a lot of betting against certain companies prior to taking everything public. Some of the most current short positions included Globalstar, a satellite company, and Zafgen and Sage Therapeutics, both well know drug manufacturers.
The main hedge fund through Kerrisdale is used to bet both against and for the company’s stocks. The yearly return has averaged roughly 28 percent during the past five years. Through March of 2016, the fund is down approximately seven percent.