How Sahm Adrangi Makes Money for His Hedge Fund

Sahm Adrangi is an entrepreneur in the financial industry. After graduating from Yale he got a job as an analyst at Deutsche Bank. He had a position in their leveraged finance department for around one and a half years before he left to join another financial firm, Chanin Capital Partners. At this company he handled bankruptcy restructuring transactions. After another year and a half he joined Longacre Fund Management, LLC. Here he was one of the analysts of a $2 billion hedge fund that invested in distressed debt.

Founding Kerrisdale Capital Management, LLC in 2009, he now manages his own hedge fund. He started out with just $300,000 that came from his own pockets and those of his close family. His first big score for his fund was when he shorted a group of U.S.-listed Chinese companies that he had identified as phony companies. He made a few million doing this, he says. He said he likes to short companies like his idol in the industry, Dan Loeb.

Sahm Adrangi was just 32 years old when he started Kerrisdale Capital Management. He was born in Iran but grew up in Canada. He had first moved to the United States in order to attend Yale University. After he scored with the fake Chinese companies he started getting larger and larger investors using his hedge fund to make money. His strategy involves researching companies and figuring out what their big flaw is. Once he spots the flaw he shorts the company and then reveals to others in the industry why the company’s stock value is terribly overpriced.

More recently, Sahm Adrangi has been taking a close look at companies that are in biotech. One of the companies he shorted in this industry was Prothena. They have a drug in the pipeline called NEOD001 which is being researched to see if it can cure AL amyloidosis. The company’s market cap went past $2 billion which Sahm Adrangi thought was terribly overvalued. His research showed that the drug didn’t have any promise to it. The company also had to shut down another drug, for psoriasis, that failed in its PhaseIb stage.

Learn more:

No Comments

You can leave the first : )