Sahm Adrangi is the mastermind behind Kerrisdale Capital Management, a company focused on making investments that are driven by certain occurrences. On top of that, Kerrisdale Capital Management also invests in places that have a long-term value. Through research, Sahm Adrangi, backed by the resources at Kerrisdale, has been able to do an analysis of many companies and situations involving the stock market. Since the company manages assets worth $180 million, most of the information that Kerrisdale’s CEO comes by is authentic and more so relatable. After he finishes doing the research, he then publishes the findings with Kerrisdale.
The findings published with Kerrisdale have been a wakeup call to many people as its founder has exposed fraudulent institutions that often use clandestine means to gain more on their end. An instance of one of his research is one he did on St. Joe Company. After performing an exhaustive investigation of the company, he found that the company had been mendacious about their valuation. His findings estimated the company’s alleged value to be 40% less than what the company said it was worth. He went on to explain the reason for this report. Apparently, some of the assets that St. Joe Company held were unlikely to be developed because of their nature. For instance, the land St. Joe Company owned were remote and swampy, meaning that the company could not develop the land.
St. Joe Company, according to Sahm Adrangi’s report had not started developing the land because there had been no action concerning the acquisition of the needed permits. In addition, Fairholme Fund, a partial owner of St. Joe, needed rid off $180 million worth of shares. This move was important, as it was one of the SEC rules, which they had to comply with. Sahm Adrangi found out from an official at SEC that Fairholme would have to have a limit of 15% shares at St. Joe. This activity was supposed to happen over a span of 150 days.
Sahm Adrangi explains that St. Joe had big problems because they had to develop commercial space in 400,000 square feet and 2,700 homes every year, a very difficult thing to keep up with.