How SahmAdrangi Makes Money By Shorting Stocks

SahmAdrangi is the founder and chief investment officer of Kerrisdale Capital Management, LLC. It was in April 2009 that he founded this investment company which is located in New York City. One of his bigger transactions occurred in 2016 when he raised $100 million from other investors. The money was used to bet against one single stock, as his research led him to believe it would fall and by shorting the stock he could make back a lot of money.

Usually hedge fund managers raise money in order to invest in a company or sector they expect to experience growth. The capital can be raised to invest in distressed companies that are on the verge of a comeback or it could be invested in other asset classes such as residential mortgage-backed securities. Sahm Adrangi, though, is flipping this on its head by shorting a company he sees as losing a significant amount of money per share.

When writing about raising this capital, Sahm said that because he was able to swiftly raise the $100 million he knew that his idea had been seized upon by others in the alternative investments community. He hasn’t publically revealed the name of the company, only that it is worth more than $10 billion. Along with one of his analysts at Kerrisdale, Shane Wilson, he put together a presentation including a video, a report, and a website which is being used to show other investors why he is right about this company’s stock.

Adrangi received his bachelor of arts in economics from Yale University. He has worked in the financial industry for about 13 years. He started out his professional career as an analyst for a number of firms including Chanin Capital Partners, Deutsche Bank, and Longacre Fund Management LLC.

Under Sahm’s management, Kerrisdale now has about $150 million in assets under management. He is well-known for making money by shorting stocks. He was one of the first investors to see that several Chinese companies were actually fraudulent in nature. He shorted a number of these companies in 2010 and 2011 from which Kerrisdale made a significant amount of money.

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