How Sahm Adrangi Manages His Hedge Fund

Sahm Adrangi is a trader on Wall Street. He is the owner of Kerrisdale Capital Management and as the firm’s chief investment officer he manages its hedge fund. Before founding Kerrisdale he worked in the industry as an analyst for five years. He had experience with distressed debt, bankruptcy restructuring, and leveraged finance. He has an economics degree that he earned at Yale University.

At Kerrisdale, Sahm Adrangi researches companies in various sectors of the economy. When he spots a company that he feels is overpriced he short’s the company’s stock. When he sees a company that is undervalued he then goes long on their stock. Either way, once he has either shorted or gone long on a stock he then publishes his research about the firm so that other investors know his position and he can persuade them to see things his way with his details.

The events of 2011 at Kerrisdale are what initially brought a lot of attention in the industry to Sahm Adrangi. He spotted a bunch of fraudulent Chinese companies that were trading on American trading floors. One of these, for example, was a firm that purported to be a school but didn’t actually have any students or classrooms. He shorted all of these companies stocks and after he published his research their stock tanked. It also brought the attention of the SEC to these companies and they ended up being delisted from trading in the United States.

Another big score that Sahm Adrangi had was in 2014 in the telecommunications industry. He shorted Globalstar and then held a live presentation where he presented his facts about this company. He showed that their satellite spectrum was unusable because it was right next to Wi-Fie and cellular bands that were in heavy use. The FCC ended up investigating this based on his findings. Globalstar’s stock also dramatically dropped on this news.

Currently, Sahm Adrangi is making the case against a number of biotech companies such as Bavarian Nordic and Prothena. The said that neither companies prominent drug under development showed any chance of passing their respective studies.