Business forms an important aspect of our life today. But as much as the market has a great value to offer, fraudulent activities make it difficult for investors and consumers to get returns and value for their money. The only way fraudulent activities and short selling can be eradicated from the market is through thorough and reliable research. This research requires expertise, unique insights, and dedication.
Sahm Adrangi is one of the most renowned financial experts and short activist. He is particularly recognized for his success in exposing fraudulent companies from China back in 2010. Sahm Adrangi is research-oriented and he mainly focuses on correcting misconceptions on over-hyped shorts.
Shorting fraudulent stocks and companies
One of most recent Adrangi short activism campaigns was on a land developer company in the Florida Panhandle known as St. Joe. According to the research done by Kerrisdale, St. Joe’s land holdings are only worth a fraction of its current market valuation. St. Joe’s have minimal cash flow from its current operations. Moreover, they lure investors with false promises of unlocking value in the undeveloped land close to Panama City Beach; when in reality the 177k acres that the company has is in desolate and swampy areas near the Gulf of Mexico.
Another short activism campaign by Sahm Adrangi involves biotechnology, an area of focus for Kerrisdale. According to the research conducted by Adrangi’s company, a drug being developed by Proteostasis Therapeutics Inc. for cystic-fibrosis was going to fail. The company released its phase 2 clinical trial results, which indicated success. However, Kerrisdale’s research indicated that the drug was going to fail its phase 3 clinical trial because there was no discernible benefit of the drug to a patient’s lung function. Moreover, there was a high alarming result of a patient experiencing fast deterioration despite being on a high dose of the drug.
Sahm Adrangi is the CIO and founder of Kerrisdale Capital Management LLC. Kerrisdale manages an estimated 180 million dollars. This business was built around short activism under the directive of Sahm Adrangi. Kerrisdale’s research and work focuses on industries such as telecommunications, mining, and biotechnology.