When a trader shorts a stock it’s because they think it is over-valued and is very likely to fall in value. One company that recently made a big bet against a publicly traded company’s stock is Kerrisdale Capital Management, LLC of New York City. The company’s Chief Investment Officer SahmAdrangi said that his company raised $100 million from investors that he will use to short this company’s stock in order to make a large profit.
Adrangi hasn’t yet revealed what company he is betting against. However, he said that Kerrisdale Capital Management was able to raise the $100 million very quickly which shows him that other traders and investors believe he’s onto something. All he’s revealed so far about the company whose stock he is shorting is that it’s presently worth over $10 billion. He and one of his employees, Shane Wilson, are working to develop a campaign that will be used to show other investors the information they have on this company. The information will be provided on a website and will also incorporate a report as well as video.
Adrangi has been in the financial industry since 2004. He holds a Bachelor of Art in Economics that he earned in 2003 from Yale University. He started out his professional career as an Analyst at Deutsche Bank. About a year and a half later he got the same position at another firm, Chanin Capital Partners. He also worked as an analyst at Longacre Fund Management LLC where he specialized in distressed debt.
It was in 2009 that Sahm founded Kerrisdale Capital Management. When he first started the company it only held $1 million in assets under management. Today Kerrisdale Capital Management has $150 million in assets under management. He has shorted other companies, such as a number of Chinese companies that were fraudulent in nature. Adrangi had figured this out and shorted their stocks so that when they were exposed as frauds his company made a great deal of money.