How Sahm Adrangi Of Kerrisdale Capital Management Approaches Investing

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.

https://www.linkedin.com/in/sahm-adrangi

Shervin Pishevar – Nostradamus of the US Economy

Shervin Pishevar, an Iranian-American venture capitalist, and philanthropist is known to be a man of many words. He has had a hand in developing businesses that touch most of our lives, such as Uber and Tumblr. His background proves that he is well versed in the mechanics of investments and helping small businesses grow. The founder of Sherpa Capital stepped down in December after allegations of sexual misconduct, and from there, Shervin Pishevar has been spending more time on Twitter, in a 21-hour long “tweetstorm” predicting his view of the future on many levels.

Key Predictions

Shervin Pishevar (@shervin) predicts that the market will drop 6000 points in the months ahead, and bonds will become volatile.

Bitcoin will continue to crash, citing the “era of cheap money is dead”, and underemployment is stunting economic growth. Gold, by contrast, will continue to increase in value.

US infrastructure is crumbling and in the shadow of rivals like China, who “built a train station in 9 hours”. Innovators like Elon Musk, however, have a bright future with SpaceX and Hyperloop One as long as they can get the support to execute.

US startups like Amazon, Alphabet, Facebook and Apple have a monopoly on Silicon Valley, which are smothering startup growth of new companies.

Decoding the Tweets

Shervin Pishevar has never been a man to mince words, nor is he afraid to let us in to his stream of consciousness. While generally his tweets paint a bleak future for the US economy, he he does see hope in encouraging startup companies, and in technology to put everything back on track again. He also alludes to actions taken against immigration at stifling culture and development while rivals in other nations achieve amazing things.

Whether or not Shervin Pishevar’s tweets are taken seriously or not, it is an interesting and unique view of the US state of affairs from the perspective of an immigrant investor who has helped develop so many brands we use today. Over the coming months and years, the investment community will be watching and waiting to see how many predictions come to be.

http://nymag.com/selectall/2016/10/the-kink-in-elon-musks-hyperloop.html