In 2009, Sahm Adrangi established Kerrisdale Capital Management to look into the stock market. The firm’s activities are geared around researching different market players including the mining and biotechnology industries. They have also helped to unearth goons within the market-saving investors thousands of dollars.
Their business has grown by leaps and bounds thanks to their unrelenting focus on short activism. He recently had an opportunity to address a conference that sought to find out what was going on in this market. Kerrisdale Capital had initially focused on a number of fraudulent Chinese firms before eventually settling in US-based firms.
Their findings are usually posted on their website. The firm also has an e-mail distribution list that circulates their reviews and findings to subscribers. Their twitter feeds also provide useful information. Seeking Alpha has also provided them with a platform to enlighten their audience.
Sahm Adrangi was proud of the nine-year history that has seen them put together a good number of campaigns. He was especially impressed by the most recent one. They believed that a certain parcel of land in Florida was not worth more than half its market price. They did not shy from making this known to members of the public.
His talk also revolved around ad frauds that were opening up opportunities for them. They had helped to broaden the appeal of short activism as was clearly demonstrated during the Herbalife campaign. Pershing Square had successfully engineered and run the campaign. The ad frauds enable them to mind the welfare of the society as they run their campaign.
Ad frauds essentially allow impersonators to make money from firms by having robots click on ads on their websites. Advertising firms will wire money to the impersonators but won’t really gain from the ad clicks. A number of ad companies gain from ad frauds as is demonstrated in their reluctance to adopt detection techniques.
Short activists can take advantage of the situation according to Sahm Adrangi. All they need to do is bring these practices to light. They get to aid the big firms while advancing their own agenda.
Sahm Adrangi contributes articles to the New York Times as well as the Wall Street Journal. He had previously served the Longacre Fund Management Company as an analyst for two years. He studied economics at Yale University and graduated in 2003.