Reuters received insider information about Kerrisdale Capital Management, raising $100million to bet against a single stock, from investors. Kerrisdale is a relatively small company based in New York, founded by Sam Adrangi.
Before this brilliant idea by Kerrisdale, hedge funds managers used to pool funds to concentrate on a specific investment premise such as recuperation of ailing energy companies. However, this original ‘co-investment’ fund idea by Kerrisdale is a first in the investment market. They plan to use the fund to short the stock of an upcoming public company.
In an email reviewed by Reuters, Sahm Adrangi informed the investors that they had gained acceptance within the alternatives community by raising a significant amount of capital in a short time. He added that they had taken a company worth more than $10 billion and attempted to make everyone understand their imagination about it.
The email continues to reveal that Adrangi is working with Shane Wilson who is a Kerrisdale analyst focused on the new campaign, to generate a report, video, create a website and come up with additional means of convincing more people of their thesis.
The anonymous source who insisted on their anonymity since the information they gave was not intended for public release, added that the targeted company is scheduled for a mid-May unveiling. To establish its position in the new company yet to be named, the fund has been acquiring stocks by the day. For more info about us: https://www.benzinga.com/topic/sahm-adrangi click here.
In the recent past, Kerrisdale has managed to short the stock of companies such as drug makers Sage Therapeutics and Zafgen, and satellite company Globalstar. Kerrisdale now manages about $500 million. They use this money to bet against companies and taking its case public.
The insider stated that Kerrisdale’s primary hedge fund had made an average annual profit of about 28% over the last five years.
Adrangi is a former investment analyst at Longacre fund management, a private partnership with over $1.2 billion in assets. Previously he worked at Chanin Capital Partners in bankruptcy restructuring. Before this, he worked in the leveraged finance group of Deutsche Bank.
Sam holds a Bachelors of Arts in Economics from Yale University and has been involved in all aspects of Kerrisdale’s development since he founded it in 2009.