Sahm Adrangi’s Negative Report on St. Joe Matter

Sahm Adrangi is the chief investment officer at Kerrisdale capital located in New York. He has a Bachelor of Arts in Economics from Yale University. His previous position includes serving as the analyst at Longacre Fund Management, Leveraged Finance Investment Banking, and Restructuring Investment Banking group among others. Longacre Fund Management is a privately owned investment partnership that had $1.2 billion of assets under their management in the year 2008. Sahm Adrangi used to conduct research and analysis in the firm for both equity and credit funds.

Information is circulating on a negative report that he issued on the St. Joe Company. In the report, Sahm says that St. Joe’s land holdings are worth a fraction of the market valuation of the company and they are overhyped. This is under very aggressive development assumptions made. The largest shareholder at St. Joe, Fairholme Fund, is prone to the new SEC liquidity rules and terms. The rules will require the company to minimize their stakes, which may raise the risks for forced selling. There is no optimism regarding the capital budget of St. Joe. Sahm Adrangi has taken a step to publish a negative report that explains its small position at St. Joe Company. This company is devoted, and it hopes to transform the exposed land near Panama City Beach to become a desirable destination for businesses and retirees. However, St. Joe may not be in a position to develop the land due to the valuation of $1 billion in the company. Minimal growth and development are going on in the interior land. Minimal activities are happening regarding building, and another advancement progresses. Due to this, Sahm Adrangi points that there will be a need for the long-suffering investors to continue waiting for more to see the progress at St. Joe. This is because the company is continually struggling to attempt monetizing the land though at a pace that justifies the valuation. More problems continue to be experienced by the investors with its largest shareholder facing more problems. It holds more than a third of the shares at ST. Joe Company. It is therefore expected to reduce its position by almost half. Nevertheless, Kerrisdale has a short position here and is set to benefit when the share price drops.

 

http://fortune.com/2016/04/21/sahm-adrangi-kerrisdale-short-sale/