Approximately $100 million has been raised by Kerrisdale Capital Management of Sahm Adrangi from the investors to bet against an individual stock, an individual who is familiar with the situation told Reuters. This brand new co-investment of Kerrisdale appears to be first of its kind. Sometimes, Hedge fund managers raise money so that they can focus on a certain investment thesis like the recovery of the distressed energy companies or even the residential mortgage-backed securities. But for Kerrisdale, which is a fairly small firm that is located in New York, now plans to utilize the money in shorting the stock of a soon-to-be-revealed public company.
Shane Wilson and Adrangi, a Kerrisdale analyst, have focused on the approaching campaign and are working on a video, website, report and more so that they can convince others about their thesis, that is according to an email they sent. A person who spoke on anonymity since the information was not meant for release to the public said that the target company would be unveiled around mid-may. According to the letter, the fund has started buying stock so that it can establish its position in the so far unnamed company.
Sahm Adrangi is the Chief investment officer and the founder of Kerrisdale Capital Management. Since the firm was founded in 2009, Adrangi has been greatly involved in all aspects of the development of the firm. Perhaps well recognized for the short research activism, Adrangi initially made a name for himself in shorting of fraudulent Chinese companies, with various companies having since then become the subject of the actions of enforcement actions by the exchange and securities commission.
Mr. Sahm started his career in the leveraged finance and investment banking group of the Deutsche Bank and was later the investment analyst of the Longacre Management which is a Multi-billion-dollar distressed debt hedge fund. Before his position at Longacre, Mr. Adrangi worked at Chan in Capital partners in the bankruptcy restructuring group where he assisted in advising the creditors in the chapter 11 bankruptcy restructuring. Mr. Sahm is a Yale University graduate, and he has a Bachelor of Arts degree in Economics.