Sahm Adrangi Explains Why He’s Long on Luxoft

Sahm Adrangi is a short seller who runs a hedge fund in the greater New York City area. He holds a bachelor’s degree in economics that he earned at Yale University. Once he was out of college he joined Wall Street. He worked as a financial analyst for three large financial companies; Deutsche Bank, Longacre Fund Management, LLC, and Chanin Capital Partners. After working in the industry for five years he started his own financial firm, Kerrisdale Capital Management LLC.

When deciding what company’s stock to short Sahm Adrangi looks to see what businesses he sees as being overvalued. Shorting stock is what Sahm Adrangi is mostly known for but at Kerrisdale Capital Management he does have long positions on companies that he sees as undervalued as well. The largest investment that Sahm Adrangi has made in a company is Luxoft. This is a company the develops software and also provides IT services.

There are a number of reasons that Sahm Adrangi thinks Luxoft has an underpriced stock value. He thinks that in five years the company will double in value and in 10 years time it will be three times what it is today. He says that Luxoft has 11,000 very skilled programmers working for it who are located in Central and Eastern Europe. They provide their services to companies in Western Europe and North America.

When talking about why he took a long position on this company, Sahm Adrangi said that originally he was researching the company in order to short its stock. He changed his opinion of the company when he saw that they were signing up many companies to be customers beyond the big five they had been providing services for. He says that what many other investors missed was that Luxoft had a number of automotive companies as customers and that sector is expected to grow over 35% in the upcoming years.

Whether investing in a company or shorting it Adrangi publically announces his investment positions. He likes to get his research in front of other investors so that he can persuade this to his position on a company.

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