SahmAdrangi is known for his calm demeanor. But this is in sharp contrast to the controlled aggression displayed by Kerrisdale Capital Management. Mr. SahmAdrangi is just 33 years old. Still, he has managed to remove several foreign companies which were corrupt, from the New York stock exchanges. All this has helped him to earn large investment returns. He has managed to achieve this in just three short years.
Mr. Adrangi was born in Canada. His hedge fund, namely, Kerrisdale Capital Management, was just a $US1 million start-up. Under his able leadership, it is a $US200 million investment house today. It has managed to take hedge fund activism into the realms of social media too. His strategy is to seek profit by uncovering corporate fraud. This strategy has delivered returns for another hedge fund. This is an Australian hedge fund, namely, Bronte Capital. It is led by John Hampton. He is an inspiration for Mr. SahmAdrangi.
Mr. Adrangi started his career in June 2010 as a hedge fund investor with the alias www.ChineseCompanyAnalyst.com. He was looking at the murkiness in Chinese reverse mergers. This was the way for companies to enter the North American bourses un-vetted. They were managing it by rolling into entities that were already listed. He soon realized that all these companies were scams. He could make money out of them only by exposing them. While exposing these Chinese companies, he kept his profile anonymous.
He had to make himself visible publicly when BusinessWeek, along with activist investors like Carson Block and Hempton started disclosing Chinese frauds. Then he decided to start publishing under the name, Kerrisdale Capital Management. He feels safer today as many others are involved too in this exposure. He had started his hedge fund with less than $US1 million. This had mainly been raised from family, friends, and supporters. All of them wanted to exploit this folly of investors who wanted to buy Chinese companies. The major event was the spectacular raid made by Kerrisdale Capital Management on Chinese Education Alliance (CEU). This was an online education business. It had its headquarters in Harbin, China.