Kerrisdale Capital Management is a private investment firm located in New York City. It is owned and operated by Sahm Adrangi, a graduate of Yale University. He recently issued a negative report on The St. Joe Company in order to explain why he had decided to take a short position on this company’s stock. If their stock falls in value his company’s hedge fund will make money.
The St. Joe Company is a real estate company headquartered in Florida which presently has a market value of $1 billion. They purchased a huge area of swampland close to Panama City Beach which they are trying to turn into a development that will attract both retirees and companies. Sahm Adrangi says that these plans are very misguided and due to this he says that this company is not worth anything near $1 billion.
The land Sahm Adranig is talking about is located in an area that is swampy, bleak, and too far from anything else he says. He wrote in his report that in order to justify St. Joe Company being worth $1 billion they would have to sell more than 2,700 home each year as well as 400,000 sq ft of commercial space. They would have to keep up this pace of building for the next half-century. He said if that were to happen that would mean this development would be the best selling master-planned community in the entirety of the United States and in fact would be more new property than the entire rest of the Panhandle of Florida for the last year which is extremely unlikely to occur.
Sahm Adrangi established Kerrisdale in April 2009 after having been in the financial industry for five years. He was an analyst at Longacre Fund Management LLC, Deutsche Bank, and Chanin Capital Partners before becoming an entrepreneur. While working for other companies he became very experienced in financial areas like bank debt, leveraged buyouts, restructuring debt, high-yield bonds, and equities. Sahm Adrangi frequently shares his views on various stocks, particularly when he sees a company as overhyped like he believes The St. Joe Company presently is.