Real estate is a form of investment that capitalists are encouraged to take. When it comes to performance, this sector has been doing exemplary well with the returns taking a positive trend. Limitations are also encountered such as poor geographical and climate conditions. This is not different from what was encountered in St Joe Company as per the research carried out by Sahm Adrangi alongside Kerrisdale Capital. St Joe Company is an establishment that is coming up very well. This firm has been established in Panama Beach where development has been ongoing.
Most of the times, valuation is conducted by different individuals using different methods. This is done specifically to enhance accuracy. Sahm Adrangi is also a financial analyst who comes up with computations to prove that indeed St Joe Company had been overestimated. These estimations had been done in terms of the firm’s present value. Sahm Adrangi also conducted extensive research on the company shares and found out that they had been undervalued. This devaluation had come as a result of some commercial developments that had been planned but never happened. Overestimation of land holdings and failure among the part owners also contributed to the devaluation.
St. Joe Company had an intention of establishing enterprises that will generate monthly income and a recreation site for the customers. This firm has also embraced diversification by buying a particular piece of land that had been lying idle with the intention of improving it. When it comes to purchasing of land usually, this is a legal process that takes time. Sahm Adrangi has challenged the company for lack of advancement on the investment. He went ahead and stated that the only solution that will sort out the delay is proper valuation of the property.
In any organization, the shareholders happen to be the key players. They may be either the reason behind the success or failure of a firm. Sahm Adrangi advised that liquidation of shares can be a solution to overvaluation. He based his argument on the new rules placed by the SEC. The only way that this would work is by depriving some of the shares of the holders.
Sahm Adrangi is the founder and the current Chief Investment Officer of Kerrisdale Capital Management. Mr. Adrangi has played active roles in all the developmental aspects of the company since its establishment in 2009. The company was established with an initial capital of approximately 1 million USD and it currently has assets and properties worth 150 million USD as of 2017. Mr. Adrangi is well known for short selling and publishing research. Kerrisdale Capital Management has been active in exposing corrupt companies in its publications and writing reports about developing companies.
Before founding Kerrisdale, Adrangi served as an investment analyst at Longacre Fund Management. Longacre Fund Management is a privately owned investment partnership worth 1.2 billion dollars of assets spread across the debt credit fund and the equity fund. Adrangi carried out both investment analysis and research for the credit and the equity funds. He worked at Chanin Capital Partners. He advised the creditors about out-of-court and bankruptcy restructuring. He represented bank debt holders, equity committees, and creditors of other bankrupt companies during his time at Chanin. Sahm Adrangi also worked at Deutsche Bank, a finance group, before moving to Chanin. His roles in the bank included structuring and syndicating non-investment grade bank debt as well as high yield bonds.
Sahm Adrangi has carried several investment agreements in the past. He assisted the Lindsay Corporation management to improve its cash deployment and capital allocation policies in 2013. A year later, he was part of the directors put in charge of Morgans Hotel Group. Sahm Adrangi holds a Bachelor of Arts in Economics degree from Yale University. Apart from being an analyst, Sahm Adrangi is also a speaker and has spoken in many conferences locally and internationally. Some of the conferences he has taken part in include the Value Investing Conference, Traders 4 a Cause, the Distressed Debt Investing Conference, and the Sohn conference among other conferences. He has also been invited for interviews by Bloomberg and CNBC. His posts and articles have been included in many publications including BusinessWeek, the Washington Post, the Wall Street Journal, and the New York Times among other business and news publications.