SahmAdrangi’s Unprecedented Short Sale

Recently, in a conversation with Reuters, it was announced that SahmAdrangi, founder and Chief Investment Officer of Kerrisdale Capital Management, has planned to make an unprecedented move in which he will be shorting an unnamed, soon-to-be-public company. Mr. SahmAdrangi has currently raised approximately $100 million through investors who believe in his thesis. This new fund by Kerrisdale Capital Management has been termed a co-investment and appears to be the first of its kind. While it is not uncommon for fund managers to securing financing for the recovery of companies associated with energy, as well as residential mortgage-backed securities, an investment such as this has not been seen before.

As the head of the small New York-based firm, Mr. Adrangi recently took it upon himself to deliver an email to his investors, detailing the fact that they have currently garnered a very significant amount of money in a very short period of time, alluding to the idea that the move has impacted the alternatives community. The unnamed company that Mr. Adrangi plans to short is allegedly worth upwards of $10 billion. In an effort to continue garnering support for his thesis, Mr. Adrangi, along with Shane Wilson, an analyst for Kerrisdale, has planned to release a new report, a video, as well as a website that will continue to details intricacies of the short sale. According to an anonymous source, the target company will be revealed during May of this year, as the Kerrisdale is currently buying stock in the company in order to position themselves correctly for the move.

As the founder and Chief Investing Officer of Kerrisdale Capital Management, Mr. Adrangi has been actively involved in the development of the company since its inception in 2009. After founding the company on less than $1 million, Kerrisdale Capital Management has grown to manage approximately $500 million. Mr. Adrangi has been widely recognized for his exploits regarding short selling and publishing research, and between 2010 and 2011, helped to expose a myriad of fraudulent Chinese companies, including Lihua International, China Marine Food Group, and China-Biotics.