Kerrisdale Capital Management LLC is a New York, New York investment management company founded by its chief investment officer, Sahm Adrangi. When he founded this company in 2009 he had been in the financial industry for five years, working as an analyst for three different firms. During this time he had developed extensive experience in financial matters such as leveraged financing, bankruptcy restructuring, and distressed debt.
When Sahm Adrangi started Kerrisdale it had been with money that he had saved coupled with money his parents wanted him to manage as well as other supporters. He started out with $1 million and by July 2017 he had developed this into $150 million in assets under management. He has built up a team of analysts that carry out research that he then uses to make his investment decisions.
Starting in the second half of 2017, Sahm Adrangi started to target businesses in the biotech industry that his research showed were not the great investments that others thought they were. One of these was Bavarian Nordic which was developing a cancer drug. Adrangi had said that their cancer vaccine was a big failure. Once its study on this vaccine was complete it was proven that Sahm had been right. He had shorted this company’s stock which led to a profit windfall for his hedge fund.
Another biotech company that Sahm Adrangi has shorted in last few months is Prothena. Their market cap had exceeded $2 billion on hopes for its AL amyloidosis drug. The analysts working for Kerrisdale said that their research showed this drug had zero promise. Their Phase IIb and Phase III studies on this drug have yet to be completed but he is completely sure that this drug has absolutely no value and expects Prothena’s stock to plummet. Get More Information Here.
Sahm Adrangi had also been proven right about another drug manufacturer in 2017, Sage. He shorted their stock and was proven to have been right to do so not long after. As it turns out the drug that they were developing had turned out to be as ineffective as a placebo.