It was reported to the Reuters by a person conversant with the situation that Kerrisdale capital management which is owned by SahmAdrangi’s has managed to gather from investors an amount totaling $100 million for them to bet against a single stock. Kerrisdale capital management has never garnered such an amount before from investors. Sometimes, Hedge fund managers gather money as much as this to focus on an individual investment thesis like distressed energy company recovery or residential mortgage backed securities. However, the Kerrisdale which is comparatively smaller in size plans to short the stock of an upcoming public company using the money.
In an email reviewed by Reuters, SahmAdrangi addressed the investors on how they were able to gather the vast amount within a short period. According to SahmAdrangi, the great achievement meant that they had struck a chord in the alternatives community. He bragged that they managed to take on the company that is worth ten billion dollars and also tried to make the people get the insights that they have in the company.
What the email continued to show was that Sahm Adrangi together with the company’s analyst, who is focusing on the coming campaigns, is now working on how to convince the rest. The two are coming up with videos, a report, a website in addition to other materials to prove their thesis. A person whose identity he did not want to reveal since the information was confidential revealed that the targeted company is scheduled to open in May. Moreover, it has been revealed that the fund has already started acquiring stock with the aim of stabilizing their position in the said company.
Kerrisdale capital Management Company now has a wealth of approximately five hundred dollars including the hundred dollars they have collected. Kerrisdale capital management has the reputation of betting against other companies and going on to take the case into the public. According to the anonymous reporter, Kerrisdale Capital Company has got an annual return of approximately 28 percent from the hedge fund that bets for or against companies over the last five years.