Kerrisdale Capital Management LLC is a New York City investment firm. It was founded by Sahm Adrangi in 2009 and he is the chief investment officer of the company. His strategy for the hedge fund they operate is to research companies and then short the stock of companies he sees as being overvalued. Afterward he publishes his research, which he supports with presentations and a website, so that other investors see his point of view. Once the stock tanks as investors see that the company is overvalued his hedge fund makes money.
In early November 2017, it was reported that Sahm Adrangi saw the problems with a couple of companies in the biotech industry before anyone else did. One of the companies was Bavarian Nordic. He had said two months before that the cancer vaccine they were developing would fail its long-running study and he was right. It did fail and the company’s stock value dropped like a rock.
The other biotechnology company that Sahm Adrangi proved right on was Sage. He shorted their stock when he could see that their drug under development wasn’t at all effective. Later a study was released which showed that he was right and it didn’t work any better than a placebo. Kerrisdale Capital’s hedge fund made quite a bit of money due to his diligent research, and his Facebook.
It was when Sahm Adrangi shorted a number of Chinese companies who traded on US exchanges that made his name in the industry. He shorted a number of them and then revealed that they were sham outfits. Once other saw that the companies were completely fraudulent their stocks collapsed. When the SEC saw his research they investigated and removed these companies from the US exchanges they were being traded on.
Sahm Adrangi has been in the financial industry for 13 years. His first professional job was as an analyst at the international banking firm Deutsche Bank. He went on to work at two other financial companies before deciding to go into business for himself. He has an economics degree that he earned in 2003 at Yale University, and Twitter.com.