As the stock market provides limitless opportunities for capital growth, many businesses have taken advantage of this to create profit. One such company is Kerrisdale Capital Management. Founded by SahmAdrangi, whose portfolio value exceeds $100 million, this company works on betting for and against companies.
What Does Shorting of Stocks Mean?
The betting “against” companies is done by shorting their stocks. If SahmAdrangi believes that some company’s stocks are overpriced, they will borrow them and sell them right before the price drops. Then, they will pay them back when the price has dropped, thus keeping the difference for themselves.
One of the latest endeavors of this kind involves gathering money from the public so that a major stock shorting can be done. The business was able to obtain over $100 million from various investors who were fond of the plan. The company which Kerrisdale Capital Management has chosen to do this to is undisclosed, but it has been reported that it is a multi-billion dollar organization.
Success in the Past
This will not be the first time that Adrangi has betted against a company and profited a lot of money. Some examples include a satellite company Globalstar and drug-producing business Sage Therapeutics and Zafgen. Success in these endeavors is what led to the growth of Adrangi’s company and portfolio to over $500 million in total.
Origins of the Founder
Although Adrangi may appear as a villain, his career started by shorting fraudulent companies in China. This led to Security Exchange and Commission’s enforcement actions that were pushed on thosecompanies.He graduated from an IVY League School, Yale University, with a Bachelor’s Degree in Economics. Soon after his graduation, he went into the industry and found himself working for LongacreManagemen, a multi-billion dollar hedge fund.
He formed his own company in 2009 and it has been exponentially growing ever since. Nowadays, he stays active by working with investors who are interested in his “shorting” expertise that has earned him millions of dollars over the course of his career.