Sahm Adrangi is only 32 years old but he managed over one hundred and fifty million dollars in July 2017 as chief investment officer and founder of Kerrisdale Capital Management. What may be even more impressive is his brash internet presence, especially on Twitter. Not afraid to call people out for both good and bad, he has swagger in his name-calling and brutal honesty of the observable. He became well known for calling out fraudulent companies and sometimes profiting from it. Some of these companies include China Marine Food Group, Lihua, and China-Biotics. Many times, the companies he calls out end up being subject to investigations and enforcement by various agencies.
Sahm Adrangi graduates from Yale University in 2003 with a Bachelors in Economics. After graduating, Sahm Adrangi worked for Deutsche Bank in the leveraged finance group structuring and syndicating high yield bonds and non-investment grade bank debt. From there he went to Chanin Capital Partners and Longacre Fund Management from 2005 – 2007 and 2007 – 2009. At Longacre he managed a distressed debt fund of two billion dollars.
Adrangi founded the investment management firm Kerrisdale Capital Management in April 2009 with just around one million dollars. He is known for his research on the companies he investigates. He wants to show how these companies actually operate and what their prospects are. In his years with Kerrisdale, Sahm Adrangi focuses on certain areas where he holds a sort of expertise: biotechnology, mining, and telecommunications.
He has a particular knack for predicting huge problems in the biotech field. When Sahm Adrangi shorts a company’s stock around the hype of a new drug, absolute failure is usually sure to follow. In at least one instance it was found that a drug was not any more effective than a placebo, another was a cancer vaccine that failed in the long run.
Warren Buffet has been investing for the past five decades and being the second wealthiest man on the planet; many people value his advice. He has been through bullish and bearish economies dozens of times and still managed to make it to the top as an investor.
Recently, he shared some nuggets of wisdom about the investment choices he thinks would be best for people who are starting to plan for their sunset years, and one vehicle that he is not happy about is the hedge funds. He has such little faith in the funds that he made a wager to invest in an S&P 500 passive index, stating that he would make more within a lesser time than people who were investing in the hedge funds. The current market analysis shows that Warren is winning the bet.
One other investor that has been following the debate is Timothy Armour. Timothy is the Principal executive and chairman of the Capital Research Management Company. He shares the sentiments of Warren Buffet and says that hedge funds have a terrible combination of common services and expensive costs on the client. Tim Armour shares the idea that for a one to establish a substantial investment portfolio, they need to have a combination of patience and intelligence so as to spot the beneficial ventures and build from the ground upwards.
Read more: You Don’t Have to Settle for Average Investing Returns. Here’s Why
The idea of investing in a certain field because it is trending is another mistake Tim believes everyone needs to avoid. He encourages people to look at their unique situation and make the investment choices that suit them best.
About Tim Armour
Tim has been at the helm of the Capital Research and Management Company for the past several years. His many decades of experience in the financial services is one of the reasons his company is as successful as it is. Timothy is an economics degree holder from the Middlebury College.
Find more on TheCapitalGroup.com.