Sahm Adrangi is the founder of Kerrisdale Capital. A company he founded around short activism which began publishing research on shorts in 2010. Adrangi is in charge of controlling more than $150 million in assets at Kerrisdale Capital. He is widely known across the industry for his substantial work in financial research and his achievement in shorting numerous fake Chinese organizations and in another places across the globe.
Speaking at a conference: The Art, Pain and Opportunity of Short Selling featured in Manhattan, Adrangi spoke on “Ad Fraud Opportunities”. The speech was significant as ad fraud has closely linked it to the prospective value of a company’s stock. Having the capacity to predict the future value of a company based on fraud or corrupt news, has facilitated Sahm Adrangi to grow Kerrisdale from a $ 1 million startups into the premier company it is today.
Short activism is the act of shorting a stock and then disclosing it to the public with reasons behind the short. Due to Kerrisdale’s credibility and thoroughly researched findings, the firm has experienced much achievement in the area.
The companies’ most recent short activism crusade has been on St. Joe developer of land in the Florida Panhandle. St. Joe Company’s appraisal was worth at $ 1 billion. A negative report by Sahm Adrangi’s claimed the company is highly valued, Kerrisdale report valued the company’s stocks to be 40% less than its current value. The reason behind the low valuation by Adrangi is because the land is a desolate swampland and there has been no progress on the land for the past ten years.
Kerrisdale also published a negative report shorting Eastman Kodak Company. Kodak is a commercial printing and imaging company whose stock rose to 187% after it announced a partnership to take-off a blockchain enabled image licensing platform and photo-centric cryptocurrency. Sahm Adrangi claimed that the announcement by Kodak was an attempted move to divert investors from the company’s distraught financial position. He further adds on that Kodak is a dying company and blockchain will not save it.