Shrewd investment expert, Adrangi, recently made headlines after Kerrisdale Capital Management successfully raised nearly $100 million from its investors. A source conversant with the issue told Reuters that the motive behind the fundraising was to wager against a single sock. Typically, hedge fund managers raise funds to deal with a given investment thesis like residential mortgaged-supported securities or the recovery of distressed energy companies. Nonetheless, Kerrisdale Capital Management went out of the norm by planning to use its money in shorting the stock of a yet to be known public company.
In an email addressed to investors, Adrangi, the chief investment officer and founder of Kerrisdale, expressed his joy in managing to raise such a significant amount of money within a limited duration. The email also unveiled that both SahmAdrangi and the company’s analyst, Shane Wilson, were working on a website, report, video and more tools geared towards creating a compelling thesis on the upcoming campaign. The name of the targeted company was set to be revealed in mid-May. The anonymous source also told Reuters that the Kerrisdale co-investment fund had already started purchasing stock in the unnamed company in a move to establish its position.
Kerrisdale Capital Management
Kerrisdale Capital Management currently manages about $500 million inclusive of the raised funds. The company has a reputation for placing bets against companies. Some of the companies that have fallen victim to Kerrisdale include satellite company Globalstar as well as drug makers Zafgen and Sage Therapeutics. Kerrisdale’s primary hedge fund boasts an average yearly return of almost 28% throughout the past five years.
Adrangi is undeniably an investment expert. In fact, he is the proud founder of Kerrisdale Capital Management. Since the company’s inception back in 2009, Adrangi has significantly participated in all its development aspects. As a testament to the success of Kerrisdale, it was founded under $1 million and currently manages $150 million. Sahm is best known for publishing research and short selling. He has a reputation for sharing Kerrisdale’s views on stocks such as overhyped shorts and under-followed longs that are often misunderstood by the market. Adrangi first gained prominence in the industry after exposing and shorting fraudulent Chinese companies like China-Biotics and China Marine Food Group.