Earlier this year, Kerrisdale Capital Management rallied investors to contribute funds aimed at betting against a company that launched in mid-May. 100 million dollars was raised to that effect, putting the total assets under the firm’s management to half a million dollars. The intention of the company to use the finances to short sell stocks is uncommon among investment companies. Kerrisdale Capital Management has, however, undertaken such transactions in the past in companies such as Sage Therapeutics, Zafgen, and Globalstar. The previous experience illustrates that the company had the required expertise to pull through. To cement its place in the unnamed company, Kerrisdale Capital Management began buying stocks way before its launching.
Bringing Investors on Board
Unlike previous bets against companies, Kerrisdale Capital Management had intended the information to remain in the company. Reuters got an email showing details of the investment strategy sent to investors by the company’s Chief Investment Officer Sahm Adrangi. He was determined to ensure that all investors understood the strategy and all were on board. He dedicated his time to draw up a report, record a video, and design a website explaining the rare type of investment strategy. He was able to deliver with the help of Kerrisdale Capital Management’s Analyst, Shane Wilson. The short duration that the funds were raised in was, however, a clear indication that the investors had enough faith in the expertise of the company.
Kerrisdale Capital Management has recorded a consistent figure in its hedge fund’s yearly returns over a couple of years. The annual returns have been standing at 28 percent average in the last five years. The figure, however, went down by 7 percent last year. The company uses the hedge fund to bet for or against stocks.
About Sahm Adrangi
Sahm Adrangi is an investment expert with experience of over a decade drawn from reputable companies. His career started at Deutsche Bank in the year 2014 where he worked as an Analyst. He then worked for Chanin Capital Partners and Longacre Fund Management LLC before joining Kerrisdale Capital Management.
Sahm Adrangi can credit his background training to his progress in his career. He attended the prestigious Yale University graduating with a Bachelor of Arts degree in economics.
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