How Sahm Adrangi Manages His Hedge Fund

Sahm Adrangi is a New Yorker who works in the financial industry. After getting a degree in economics from Yale University in 2003 he got a job at Deutsche Bank as an analyst. He stayed at Deutsche Bank for about a year and a half, working in their leveraged finance group, before leaving in order to join Chanin Capital Partners. At this company he was an analyst who handled bankruptcy restructuring. After a year and a half he then joined Longacre Fund Management, LLC, again as an analyst, this time in the distressed debt group.

Launching his own company in April 2009, Sahm Adrangi now runs a hedge fund through his company Kerrisdale Capital Management, LLC. He is the company’s chief investment officer, although he has a hand in running all aspects of his company. His specialty is shorting company’s stocks when he sees that they are overvalued. The first time he came to the attention of the broader investment community was when he saw that a number of Chinese companies trading on American stock markets were actually fraudulent. He shorted their stocks and he was proven right when those companies stocks tanked when he showed other investors his research.

Another industry that Sahm Adrangi is active in is the television satellite industry. Sahm Adrangi says that it’s pretty clear that the entire industry is in a secular decline with no hope of turning things around. Consumers are increasingly dropping their satellite packages, he says, and if anything this will accelerate. One of the companies he has targeted is Globalstar Inc. and when he revealed his short position on its stock the company’s shares dropped by 25%.

There is $3 trillion invested in hedge funds around the world. Sahm Adrangi’s is worth $150 million. This makes Kerrisdale Capital Management a relatively small player in the industry but, nonetheless, his moves are noted by other hedge fund managers and investors. He’ll research a company and then short it if that seems like the smart decision. He then releases his research so that others can see what he is talking about and why he thinks the company is overvalued.


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