Kerrisdale Capital has raised nearly $100 million from investors to bet against one stock. It is not a new concept where hedge fund companies will raise money to deal with a specific financial transaction such as saving an energy company that is in the process of going down or mortgage backed securities. What makes Kerrisdales actions unusual is that it is going to use the co-investment method to short stocks of a company that is in the process of going public. This move is being spearheaded by Kerrisdale’s Chief Investment Officer, SahmAdrangi. He says, the fact that the company raised that much money in such a short amount of time shows that people in the alternatives community believe in this move.
Sahm, along with one of his analyst, Shane Wilson, is in the process of putting together a more comprehensive thesis, which involves videos, reports, and websites, to take their point across to potential investors. They will let the world know the company they are targeting through this campaign, by the middle of May. This information was released in anonymity since at the time it was not yet ready to be made public. Kerrisdale has already begun purchasing stock in this yet-to-be named company, to put itself in a better position and to know more
Kerrisdale was founded in 2009 by SahmAdrangi and he built it up from scratch to its present position, which is a company that manages nearly a half a billion dollars in investments. Sahm has in the process gained a reputation as a research activists. He gained this reputation after outing deceptive Chinese corporations. Some of these companies went on to be investigated by the Securities and Exchange Commission. He started his career at Deutsche Bank as an analyst, after which he took his skills to work for Longacre Management, which is a distressed debt hedge fund.
In short, SahmAdrangi has become a legend of sorts, as an investor who goes after shady companies and wins in the process. His company, Kerrisdale, has historically bet against and for stocks of companies and has made 28% in returns on average, for the last five years.