Despite being 33 years old, Sahm Adrangi has made a name for himself in the financial industry. He is a private investment manager who operates his own business, Kerrisdale Capital Management, LLC. He is located in New York, New York and he has two focuses for his hedge fund. The first focus is on investing in long-term value investments. The second one is taking advantage of event-driven special situations. It is this latter focus which led him to short the stock of Proteostasis Therapeutics, Inc. and then release a negative report about this company.
Proteostasis Therapeutics is a firm which pretty much bases its entire value on one drug candidate, PTI-428. This drug is being evaluated for the treatment of cystic fibrosis. Their stock soared by 100% when PTI-428 was given both the Orphan Drug and Breakthrough Therapy designations by the Food and Drug Administration. However, Sahm Adrangi and his team presented their analysis that is drug is very likely ineffective. He issued a negative report indicating that Kerrisdale Capital saw a pattern of low-quality data in regard to this drug and some vital information was omitted from this company’s public disclosures.
Due to what he saw, Sahm Adrangi took a short position on this firm. This means that if their shares fall the fund he manages will make money. In his report he noted that he was going to have a conference call later that day where he and his team would go into more detail in what they discovered. This was held on March 20, 2018. at 10:30 a.m. ET. Anyone could call in and participate in this event.
Sahm Adrangi has been managing his investment firm since 2009. His company now manages $300 million which is mostly in value investments. He entered the financial industry in 2004 after graduating from Yale University. He worked as an analyst for a few different firms, such as Longacre Fund Management LLC, before deciding to open his own company. He was able to do so with his own money plus that of his family, friends, and other supporters.