Sahm Adrangi started his activism by protesting unfair trade policies at the World Bank and International Monetary Fund Meetings after the Seattle Trade Talks in 1999 went South. Now, he’s making a difference and a new and more effective way, by making investment bets against companies that he believes are misleading the public and scamming investors. The type of investing the hedge funder takes part in has become known as activism or value investment, a method in which investors base their actions on moral values as well as profit. Sahm Adrangi founded the company he is Chief Investment Officer of, Kerrisdale Capital Management LLC, in April 2009 with approximately $1 million. His company has now managed hundreds of millions of dollars at one given time and consistently makes a profit and a difference.
Sahm Adrangi joined a group of investors who were betting against and shorting US-listed companies based in China who had joined the market using the reverse merger method, a business practice looked down upon by many including some in the Securities and Exchange Commission. In the case of China Education Alliance, the Yale University Economics graduate sent an investigator into the school itself where they found that their so-called “modern classrooms” had no desks for the 1,200 students the for-profit business claimed. Sahm Adrangi’s actions caused the company’s value to drop from $150 million to $25 million and investigations were initiated against them.
In recent years, Sahm Adrangi has been getting attention for his bets against drugs in development that he believed companies were hyping even though they knew any effects were essentially a placebo. In 2016 he raised $100 million to short a company that in 2017 led to immense profits as the drug did indeed fail completely in Phase III testing. He has led attacks against the biotech companies Bavarian Nordic, Sage Therapeutics, Unilife, and Zafgen as well as a few others. See This Page for more information
The Iranian born Sahm Adrangi immigrated to the United States at 5 years old and is a true American success story. Initially trying to make a difference by attending protests as a college student, he now uses his capital and talent to take down the unfair practices he was so against in his youth.