Sahm Adrangi is the chief investment officer at Kerrisdale Capital based in New York City. He holds a bachelors degree of arts in Economics from the famous Yale University. His previous positions include analyst at Longacre Fund Management, Restructuring Investment Banking Group, and Deutsche Bank.
Sahm Adrangi recently issued a negative report concerning the St. Joe Company. Kerrisdale Capital operates as a private investment manager. It published a negative report highlighting its short position at St. Joe Company. This real estate company is targeting to transform the sizeable desolate area located in Panama City Beach to become an attractive destination for businesses as well as retirees. In the report, Sahm Adrangi pointed out that St. Joe Company is not likely to develop the land due to the valuations that it is facing. Much of its land is located in swampy, desolate, and remote areas whereas the St. Joe has already monetized it. The company had foreseen a significant income source. The new retirement sector would have been a high selling community in America. Contrary to this, there is minimal progress made by St. Joe on the interior land. Very few activities and efforts of the building are happening among other things like permit fillings and signs of growth. Sahm Adrangi says that the plans for the interior land in the company were made lie ten years ago and up to date nothing tangible has been accomplished. He, therefore, predicts that the investors who have already suffered enough should be prepared to wait longer before their investments begin counting. This is because the company is still struggling to monetize the land. Due to all those issues faced by the shareholders, the largest investor for St. Joe, which is Fairholme Funds, has suffered some liquidity rules that were enacted in a few months ago. This was significantly contributed by the poor stock selection and this large investor reduced around 90 percent of its assets. Its position was more prominent in the company. Fairholme is therefore expected to reduce its status as a shareholder by half. Kerrisdale is convinced that no level of development can redeem the stock positions.