Sahm Adrangi was born in Iran and raised in Canada. As an undergraduate in the University of Yale, his passion developed from muckraker journalism to financial analysis and hedge funds.
Sahm Adrangi retired from Wall Street in 2015. What helped him too early retirement? Kerrisdale Management Company, a company Sahm Adrangi started in 2009. Kerrisdale has grown to a worth of 2 billion in part due to short sales. Adrangi is known for predicting the decline of companies based on negative performances.
St. Joe’s is the latest company Sahm Adrangi has called out for gross overstatements of value. St Joe’s is a land and real estate developer based in Florida. For over ten years St. Joe’s has failed to deliver on a proposal to develop the area near Panama Beach City. Managers of the company promise their shareholders a sunny metropolis of businesses and retirement communities. However, Sahm Adrangi blasts the proposal as “pure fantasy”.
According to Adrangi, the trading value of Joe’s stock is a bubble that will soon burst under the management’s efforts to stall their investors from jumping ship. Under Kerrisdale Company, Adrangi reports that the company’s holdings are too “unattractive to develop in the timely manner needed to justify any valuation to current trading levels”.(April 2018). A close look at the surroundings reveals swamp and dense pine forest close to a city known for poverty and a high crime rate.
As stated in Adrangi’s report, there is “barely a shoulder” on the area’s closest highway. Compounding these problems, St. Joe’s biggest shareholder has problems of its own. Fairholme Corporation will be compelled to sell off a large number of shares in St Joe’s by December in order to comply with S.E.C. regulations. Their shares are losing value as St. Joe’s fails to deliver on its proposal. In actuality, St Joe earnings come from the accrued interest of junk bonds and a previous settlement, not from development profit.
From international companies to national pharmaceuticals, Sahm Adrangi has used his passion for detail to expose the questionable business practices of Wall Street entities, protecting and advising investors toward profitable decisions.