Founder and Chief Investment Officer of Kerrisdale Capital, Sahm Adrangi, recently shorted another biotech company’s stock. With a history of predicting failure with his investments, things do not look good for Prothena’s amyloidosis drug that Adrangi indicates has absolutely no chance of being a success. His argument is that the “success” that has been shown in trials is actually just random variance that would happen with or without the presence of the drug. Sahm Adrangi has predicted the failure of a cancer vaccine previously among other biotech disasters.
Sahm Adrangi founded Kerrisdale Capital in 2009 with just around a million dollars to invest initially. While the company itself invests in a wide variety of different stocks, Sahm Adrangi focuses on biotech, mining, and telecommunications. In 2014 he exposed problems within Globalstar’s planned TLPS. He presented his research by filing and meeting with the FCC as well as a webcast and live presentation.
After graduating from Yale with a bachelors in Economics, thirty two year old Sahm Adrangi was hired as an analyst Deutsche Bank. After Deutsche he went to Chanin Capital Partners and Longacre Fund Management. The hedge fund investor specialized in bankruptcy and distressed debt.
Adrangi’s presence on social media is as interesting as his choice in hedge fund investments. The outspoken activist investor has no qualms calling out those with whom he disagrees. Only in his thirties, Adrangi has accomplished a great deal for anyone; especially someone his age. In 2011, Sahm made what he called “a couple million” by researching and shorting Chinese companies that were listed in the United States that he believed were fraudulent. His actions led to several companies having actions taken against them by the Securities and Exchange Commission; these companies included ChinaCast Education and China Education Alliance. Adrangi and his company Kerrisdale Capital want to make sure that the information that they uncover about these companies is accessible, to do this he shares what he finds on Twitter, Kerrisdale’s own website, and other investing sites.