Kerrisdale Capital Management has raised $100 million, in the bid to bet against a single stock in a transaction deemed to be one of a kind, a link close to the source told Reuters. Occasionally, hedge fund managers tend to raise money to focus on a specific investment thesis, like the recovery of energy firms in distress or securities backed by residential mortgages. However, Kerrisdale, a small firm based in New York, intends to use the fund to short stocks in a soon-to-be-determined company.
“We’ve raised $100 million of capital within a short period and taken a firm more than $10 billion, and we plan to get everyone on board regarding the insights we have about the deal,” wrote Adrangi, in an email to investors. Adrangi, together with Kerrisdale analyst, Shane Wilson are preparing a report, video and an online site to convince other relevant parties about their thesis, revealed the email. The company (TBD) is set to be revealed in mid-May due to the nature of the transaction, which is not yet ready for public release. Acquisition of stocks is underway, so the company maintains its position in the ye-to-be-mentioned firm.
Today, Kerrisdale manages $500 million, inclusive of the fund. Some of its short positions include Sage Therapeutics and Zafgen, as well as Satellite firm, Globalstar.
About Sahm Adrangi
He is the sole Founder and the Chief Investment Officer of Kerrisdale Capital Management LLC and has partaken significantly in the growth of the firm since its inception in 2009. When he inaugurated it, the company was barely worth $ 1 million, but now, the firm boasts of a valuation of more than $ 150 million.
Adrangi is well known for his prowess in short selling and publishing releases regarding the firm’s view on ambiguous matters related to securities. For instance, under-followed longs plus overhyped shorts. His goal is to eliminate the misconception surrounding Kerrisdale’s core business prospects.
Before founding Kerrisdale, he served as an Analyst at Longacre Fund Management LLC for two years. Between 2005 – 2007, he also served as an analyst in the bankruptcy evaluation division at Chanin Capital Partners.