Sahm Adrangi is the founder and Chief Investment Officer of Kerrisdale Capital, which is a investment manager that is based out of New York. He earned his Bachelor of Arts in Economics while studying at Yale University and served as an investment analyst for Longacre Fund Management. While there, he focused on investment research and analysis for the the company’s credit and equity fund. Before this, he worked with Chanin Capital Partners, which is a bankruptcy restructuring group. During his time with the company, he helped in an advisory position where he offered his knowledge to creditors, both, in and out of court as well as Chapter 11 restructurings. Today, he spots opportunities to short the stocks of companies who are not living up to their valuations.
Recently, Sahm Adrangi has put out a negative report on The St. Joe Company due to the fact that its budget is declining all while it puts off the development of the property that is supposed to revive it. The St. Joe Company is a billion dollar company that is hoping to turn a large desolate spread of land close to Panama City Beach into a place where retirees and businesses want to come to live and do business. The problem with this, as Sahm Adrangi reveals, is that the company is not very likely to develop the land, in question, in a way that makes it worth the supposed $1 billion valuation it has received.
In the negative report, Sahm Adrangi talks openly about the fact that the land is remote, desolate, and swampy, and that it is nothing like the rest of the land that St. Joe has developed, which is beachfront property. The present valuation is assuming that over 2,700 homesites along with 400,000 square-feet of commercial zone will be sold on a yearly basis. He points out the ridiculousness of this, because if this did happen, it would mean that the development would be the best-selling master-planned community in the whole of the United States. Adrangi points out this would be a miracle, because the land is highly undesirable.