Investment manager, Kerrisdale Capital, recently published a report that explained why its shorted position on The St. Joe Company. KC stated that it believes St. Joe will utterly fail in its $1 billion venture to transform a large and deserted area near Panama City Beach into a luxurious neighborhood for retirees and businesses. Kerrisdale describes the pitiful land holding as a “swampy, remote, desolate” area. They say that even if it does succeed, their expectations are way to ambitious, so ambitious that if there expectations were to come true it would make more profitable than all the other commercial real estate investments in the Panhandle combined.
But the biggest negative is that nothing has been really happening during the entirety of the project’s life. As of right now, things are going so sluggishly in the project that it is doubtful anything will ever come of it. And this is not a project that just started. It was originally proposed over a decade ago and has had investors impatiently waiting around all that time. In the meantime, some of these companies have been lessened in profitability in part because of this stagnant investment. The most so is Fairholme who is about to go under completely and incidentally owns a third of St. Joes shares.
Kerrisdale Captal is led by its founder and CIO, Sahm Adrangi. He leads his company to obtain misunderstood stocks like underfollowed longs and overhyped shorts. The company reflects this same philosophy of stocks. These can be found on its website. Sahm Adrangi entered adult life by earning his B.A. in Economics from Yale University. After graduation, he entered the financial industry by working in credit at Deutsche Bank. During these years he leveraged loan debt financing and advised creditor committees in bankruptcy situations.
Sahm Adrangi first made a name for himself in the financial world by exposing fraud in Chinese markets. In recent years Adrangi has led Kerrisdale to focus on a number of developing areas. Biochemistry, telecommunications and mining may be predominant. Sahm Adrangi is today a much coveted and sought after financial speaker worldwide. He also writes articles on finances for various periodicals.