In a recent conversation with Reuters, a person with intimate knowledge of the situation has detailed that, in an unprecedented move, SahmAdrangi, founder and Chief Investing Officer of Kerrisdale Capital Management, has raised $100 million to bet against a single stock. The stock in which Mr. SahmAdrangi has decided to bet against has yet to be revealed, but it is said that this information will be released in mid-May, once the company is scheduled to go public. This new fund, which is being termed, a co-investment, is unique in its kind. While it is sometimes common for hedge fund managers to secure funding for the recovery of distressed companies or mortgage-backed securities, a move such as this by the small New York-based firm is original in nature.
In a recent email to investors that was reviewed by Reuters, Mr. Adrangi detailed that his company has garnered a significant amount of money in a very short period of time, signaling his belief that the alternatives community has begun taking notice. Mr. Adrangi continued to detail the worth of the target company, labeling it as worth north of $10 billion. Mr. Adrangi is currently working in conjunction with an analyst for Kerrisdale Capital Management, to create a video, a website, as well as a report, to further convince investors of the credibility of their new thesis. According to the email, Kerrisdale Capital Management has also begun buying stock in the unnamed company in order to establish its position.
Mr. Adrangi is the founder and Chief Investment Officer of Kerrisdale Capital Management and has been actively involved with the inner workings of the company since its inception. Mr. Adrangi created the company with startup funds that equated to less than $1 million, and the fund now manages monies exceeding $500 million, including the new monies garnered during the announcement of the impending short sale. Mr. Adrangi is known for the publishing of research, as well as the short selling of companies, including the fraudulent Chinese companies, Lihua International, China Marine Food Group, and China-Biotics in 2010 and 2011.