Sahm Adrangi Discusses Future of Short Sellers

October 5, 2018

Sahm Adrangi, age 36, is a famed short seller and the Chief Information Officer and Founder of Kerrisdale Capital Management LLC, located in New York City. He was born in Tehran, Iran but grew up in Vancouver, Canada. Sahm Adrangi graduated from Yale University in 2003 with a Bachelor of Arts in Economics. He founded Kerrisdale in 2009 which is a firm that focuses on long-term value investments and research. Prior to founding Kerrisdale, Adrangi worked at Longacre Fund Management LLC managing over $2 billion in distressed debt. Kerrisdale focuses on research to correct misunderstandings of “over-hyped shorts and underfollowed longs” in the stock market, specifically in the biotechnology, telecommunications and mining industries. After exposing fraudulent Chinese companies, Sahm Adrangi and Kerrisdale became well-known in investment banking. The fraud was found through Sahm Adrangi’s research and resulted in some of the companies being investigated by the SEC.

He has stated that being a short seller can be challenging, especially when the market is doing well as the potential for losing money is greater. However, he does state that the market has been favorable towards short activism for the past seven or eight years. Adrangi defines short activism has “those who short a stock and then go out and publicly debate its merits” by presenting their “investing thesis.” Short activists can then “leverage the credibility” that they have built “over the years to get the market to start looking” at their short thesis and discussing it. When asked about the near future of short sellers Adrangi states that the “appetite for short-seller hedge funds is strong,” due to the market going down recently leading investors to look out for more short sellers. Overall, Adrangi believes that the future for short sellers is forward-looking as many people are changing their views and theories on short sellers to be more positive.

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