Sahm Adrangi Serves as Chief Investment Officer for Kerrisdale Capital Management
Sahm Adrangi founded Kerrisdale Capital Management in 2009 and now serves as the firm’s Chief Investment Officer. He’s a Canadian born in Iran and now living in New York City. Sahm Andrangi graduated from Yale University in 2003 with a Bachelor of Arts in Economics. He began his financial career as an analyst for Deutsche Bank’s leveraged finance group.
He moved on to work as an analyst for Chanin Capital Partners, working with the bankruptcy restructuring group. They are a boutique investment bank. Sahm Adrangi continued his distinguished career by moving up to Longacre Fund Management where he analyzed a $2 billion fund of distressed debt.
One of the investment techniques Sahm Adrangi uses to make money is short selling. That is when an investor essentially borrows securities with the expectation they will make money by later selling the securities for a lower price. If the price of that security goes up, the short seller gets “squeezed” for the difference in price. When they cannot maintain such a position, they must sell at the higher price, taking a loss, Twitter.com.
Many ordinary investors are suspicious of short selling and don’t like people who use the technique. However, in general professional traders realize securities go down in price as well as up, and they wish to make to make a profit no matter which way the price goes. They plan their trades by evaluating whether the current price undervalues or overvalues the security. How is it likely to change in the future? and more information click here.
Sahm Adrangi addressed these issues. He believes the Security and Exchange Commission allow short selling because they realize short sellers may have identified an overvalued security in the marketplace. This serves as a moderating counterinfluence when the majority of a market are pushing as asset’s price higher than it deserves, and https://seekingalpha.com/article/4052332-conversation-former-hedge-fund-analyst-long-shares-gnc.
Sometimes this may be due to misrepresentation by the company involved, which the SEC does not like. They took action against the China Education Alliance and Chinacast. In so doing, they cited the work of Sahm Adrangi. They cited the analysis of another short seller when they filed a suit against St. Joe’s.