SahmAdrangi Activism in the Stock Market

For most investors in the stock market, research and analysis on a stock inform their position in the stock market. Credit traders and analysts closely follow reviews on stocks of interests like GNC Holding. A former wall street trader turned credit analysts used SahmAdrangi’s publication on the Northern Dynasty (NAK) to buy back the company’s position on the stock. Sahm, who also worked with the analyst at Longacre, a $3 billion hedge fund, suggested that the Northern Dynasty stock is worthless given the primary asset (pebble deposits) is not commercially sustainable.

Further, Sahm highlights that the mining process would be capital intensive and require prior investments, in the long run, destroying the value of the stock. In his argument, he notes that Northern Dynasty is concealing a lot of information from the public including the possibility that the investment has a negative present value. Despite speculations that a Trump presidency would bring positive benefits to the Pebble project, Sahm’s position in the stock did not change.

Sahm, through Kerrisdale Capital Management company, short stocks that are controversial. The company began in 2009 with less than $1 million and now manages about $150 million. Sahm is the current chief investment officer and has been with the company since its inception. He specializes in short selling and research. Sahm often shares his perspectives on misunderstood, overhyped, or underfollowed stocks. The objective of the publications by Sahm and the team at Kerrisdale is to educate the investors on the essential business forecasts and misconceptions about companies in the stock market. The research is available on social media sites, the company website, and related online platforms. The articles have also featured in the New York Times, BusinessWeek, Wall Street Journal, and the Washington Post.

Sahm came into the limelight after raising the alarm on fraudulent Chinese Companies such as Lihua, China-Biotics, China Education Alliance, and China Marine Food Group. For now, Sahm focuses on particular sectors as biotechnology, mining, and telecommunications. He has researched companies such as Sage Therapeutics, Pulse Biosciences, Zafgen, Bavarian Nordic, and Unilife. After earning a BA from Yale, Sahm began his career at Deutsche Bank as an analyst. He then moved to Chanin Capital Partners and later Longacre Management. Sahm speaks in various forum and has been a guest on Bloomberg and CNBC.

 

SahmAdrangi Shorts Unnamed Stock

In an unprecedented move, founder and Chief Investment Officer of Kerrisdale Capital Management, SahmAdrangi, has raised $100 million in order to bet against a single stock; o ne in which he has yet to disclose. A person with intimate knowledge of the inner workings of the deal recently released this information to Reuters. This move by Mr. SahmAdrangi, which has been coined a “co-investment,” appears to be the very first of its kind. History has shown that companies will sometimes raise finances in order to use in an investment thesis in order to recover distressed companies, but Kerrisdale Capital Management intends to short the stock of a company that will soon be revealed after it goes public.

In an email distributed to investors, Mr. Adrangi detailed some of the initial terms of the maneuver, including the fact that his company has raised a significant amount of capital in a relatively short time span, believing that this has proven that they are making waves within the alternatives community. The company that Kerrisdale Capital Management intends to short, has been described by Mr. Adrangi as one whose worth is north of $10 billion, further emphasizing the magnitude of the potential move. In an effort to convince others of the potential that shorting this stock will have on the market, as well as to garner more investors, Mr. Adrangi, along with Shane Wilson, an analyst at Kerrisdale Capital Management, have been working on a report and a website that will go into further detail about their thesis.

Mr. Adrangi is the founder and Chief Executive Officer of Kerrisdale Capital Management and has been developing the company continuously since its inception in 2009. As of July 2017, Kerrisdale Capital Management is managing $150 million, after beginning on startup funds of under $1 million. In the world of fund management, Mr. Adrangi is well known for his exploits involving short selling, as well as publishing research. He first rose to prominence in 2011 after shorting fraudulent Chinese companies, such as Lihua International, China-Biotics, and China Marine Food Group. Mr. Adrangi has also published a myriad of reports regarding telecommunications.