While it is common practice for a hedge fund to raise money to investigate a particular investiing these, Kerrisdale Capital Management, led by its president, Sahm Adrangi has taken that practice to a new level. So far, Kerrisdale Capital Management has raised over 100 million dollars towards currently unknown company expected to take its shares public in mid-May. According to an email written by Sahm Adrangi, their strategy is clearly striking a chord within the alternative investment community, as the money was raised in a very short period of time. Currently, Kerrisdale is buying stocks to establish their position within the company and be ready for the mid-May unveiling.
Sahm Adrangi has laid out the case against the company in a series of videos and papers, and plans to do more. He is known as an activist investor, and has often worked to bet against certain companies including drug makers such as Sage Therapeutics and Zafgen.
This is one of the first times that the company has used this particular strategy.
Sahm Adrangi is the founder and Chief Investment Officer of the Kerrisdale Capital Management hedge fund, a fund that manages over 150 million dollars as of July 2017. When he launched the company back in 2009, it has 1 million dollars in assets. He became famous for shorting and exposing fraudulent Chinese companies, many of which later became formal targets of Security and Exchange Commission investigations.
In addition to time spent researching and uncovering the truth behind stocks about to go public, Sahm Adrangi also writes and posts his findings about new and upcoming stocks on Twitter, third-party investing sites, and the Kerrisdale Capital Management blog. Sahm Adrangi will often use those social media platforms to share his views on overhyped or underfollowed companies so that others may benefit from his knowledge and experience.
Previous to founding Kerrisdale Capital Management, Adrangi began his career at Deutsche Bank, then worked for the distressed debt management company Longview. He holds a bachelor’s degree in Economics from Yale University.