Sahm Adrangi, the chief investment officer at Kerrisdale Capital Management, follows two basic strategies when it comes to investing. His main strategy is to invest in companies he sees as having great long-term potential. His other strategy is the polar opposite of this approach. If the research into a company conducted at his firm shows that a company is on thin ice he will short their stock so that his hedge fund profits if the company’s stock value falls. He then reveals his research to others including doing announcements in the press and holding telephone conferences.
There are a few companies that Sahm Adrangi has invested his hedge fund in recently that he sees as having great long-term prospects. One of these is Luxoft Ldg Inc (LXFT) which he recently increased his stake in by 19.27 percent. At the end of 2018’s first quarter, Kerrisdale Capital Management held 734,056 shares in this business which was revealed in a regulatory filing with the SEC. This was up from the end of the fourth quarter of 2017 when his company held 615,456 LXFT shares. He appears to be pretty bullish on this company which is worth $1.3 billion according to its market cap.
On the other side of the equation, Sahm Adrangi is pretty down on the St. Joe Company and is shorting its shares. He says that this real estate development firm owns a huge plot of land in Southern Florida which is totally overvalued given it is remote swampland. St. Joe has a plan to convert this desolate piece of property into one that has both residential and commercial properties on it. However, this plan has been mired in the muck for the past decade and there is no hope for it coming to fruition given the conditions.
Sahm Adrangi started his company in April 2009 after having worked at other hedge funds for a number of years as an analyst. He had worked for Longacre Fund Management, Chanin Capital Partners, and the international banking giant Deutsche Bank. He decided to manage his own hedge fund where he would focus on overhyped companies to short balanced against investing in companies that show long-term value.