Sahm Adrangi: Dishonesty In QuinStreet

Sahm Adrangi is the founder of Kerrisdale Capital Management. He is 33 years old and serves as the Chief Investment Officer for the firm in New York City. Sahm Adrangi has extensive experience in his field. He earned his Bachelor of Arts degree in Economics from Yale University. Upon graduating, he has held many positions before founding his own company. He worked as a financial analyst at Longacre Fund Management and the Restructuring Investment Banking Group. He also worked as an analyst at the Leveraged Finance Investment Banking firm. The last job he held was at the successful private investment firm, Longacre. It has more than $1 billion in assets. Kerrisdale Capital serves as an investment manager that aims to focus on investments driven by particular situations. The firm is very successful because of this approach and intends to create a chain reaction by sharing investment ideas with people in the investment community. Currently, in the news, Sahm Adrangi has issued a negative report on QuinStreet, Inc. QuinStreet, Inc. is known as NASDAQ, the well-known internet marketing company. The stock price has recently quadrupled which is good news for investors. At the same time, Sahm Adrangi believes that the company has been participating in dishonest means to increase its revenue. He believes that the traffic going to the network is suspicious and phony. The revenue is increasing at the expense of the clients which is not fair. Looking further into Adrangi’s beliefs, it is evident that he is right. The growth in QuinStreet’s revenue has come from one client which is an unheard of incident. If it were an honest deal, management wouldn’t be so quick to keep it a secret. As a result, Sahm Adrangi has terminated the Kerrisdale position with QuinStreet, Inc. It is a smart idea for Adrangi to pull out of the partnership with the firm. Besides, Kerrisdale still wins in the case that the share price drops. In the fact that this happens, Kerrisdale will earn a good amount of money. It is better this way as it avoids sudden drops in the share. Honesty can go a long way when referring to the reputation of a company.

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