Sahm Adrangi Invests Against Bad Business
Hedge funder Sahm Adrangi used to be on the front lines of protests such as when he traveled to Washington to Washington in 1999 to fight against policies at the World Bank and International Fund Meetings after the highly contested Seattle Trade Talks. After being disenfranchised by the groups he was protesting, he took his activism another route: investing. Originally planning to go into Journalism, he majored in Economics at Yale University in 2003 and his views became a bit more conservative.
Sahm Adrangi, former columnist and editor for the Yale Daily News, is now the Chief Investment Officer at Kerrisdale Capital Management LLC. At Kerrisdale, the company he founded with around a million dollars and has now managed 100’s of millions in capital, Adrangi frequently makes bets against businesses he deems as fraudulent. This method is known as activist or value investing and Adrangi has reached international acclaim for his actions and research.
Sahm Adrangi has frequently been making the news lately for his forecasts of developing drugs he thinks will be proven to be as failures during late-stage research, and he keeps being proven correct. The latest to be revealed are Bavarian Nordic’s Prostvac and Sage Therapeutic’s brexanolone that were both found to be no more effective than placebo. See This Article for more information.
Sahm Adrangi’s expertise in calling out and short selling morally ambiguous companies is not limited to pharmaceuticals. His mainly focuses his time and research to biotech, mining, and telecommunications and first made headlines betting against Chinese companies who had engaged in reverse mergers with US companies to become listed on the US Stock Exchange in 2011. His research and measures taken to stop these businesses from continuing to scam investors and customers have led to many of these companies being investigated by authorities as well as the destruction of their stock prices. While he does make a considerable profit, the activist spirit in him remains and it’s not his only motivation.
The Iranian born Sahm Adrangi immigrated to the United States when he was only 5 years old. His engineer father initially relocated his family to California and then later moved to Vancouver. Adrangi has been featured in the Wall Street Jornal and has been interviewed by the likes of CNBC and Bloomberg.