Today, investing is the way to go. Talk to any employee, they’ll tell you how wise it is to save money in stocks and bonds because in the long run they give back. However, this new weave of investment has left some people scratching their heads. True, investing is a brilliant idea but how come some people get nothing in return or lose everything? Here’s how; some companies or stock brokers exaggerate some information thus misleading the buyers. Who will save us from this? Investors like Sahm Adrangi.
Sahm Adrangi is the founder of Kerrisdale Capital, a company that is concerned with publishing research on stocks that are commonly misunderstood by the market. In his research, Sahm Adrangi uncovers overhyped shorts and under- followed longs that end up causing the market to lose money. Kerrisdale publishes its findings mostly on its websites and third party investigative sites that share the same interests. Twitter has also proved useful to this company to get word around about the companies that should be called to action.
The first investigative publication that made Kerrisdale known to the public was their piece that exposed fraudulent Chinese companies. The result of this publication was several of the companies mentioned in the piece brought under investigation by the authorities and finally enforcement actions by the Securities and Exchange Commission.
Over the years, MR. Adrangi’s publications have seen many fraudulent companies be brought under investigation and disciplinary actions taken on them. Of late, he has moved from just publishing to expose fraudulent companies to becoming an activist. In 2013, he took on Lindsay Corporation Management to have them optimize the company’s cash deployment and capital allocation policies. He also led a proxy contest in 2014 which had the directors of Morgan Hotel group replaced with two from his slate. By taking this activist role, he has been able to help straighten out the market thus helping all who invest.
The result of Sahm exposing some of these companies had made quite an impact in the investment market. Investors are now keener on the terms they are presented with since they now know not all are beneficial and companies are cleaning up their act just in case someone like Sahm Adrangi finds them out and exposes them.