Sahm Adrangi is a 33-year-old executive who owns and operates his own New York City investment firm, Kerrisdale Capital Management. In February 2018 he issued a very negative report about Eastman Kodak Company and their new plan to enter the area of cryptocurrencies. His report highlighted some of his thoughts and findings and invited investors to listen in on a conference call he would be conducting about Eastman Kodak. He also explained that he had taken a short position on Eastman Kodak Company’s stock in the hedge fund that he operates.
In early February Eastman Kodak Company had announced two developments that tied in with each other. The first was KODAKOne, their new image licensing platform. The second was KODAKCoin which is their new cryptocurrency. The plan is that people will buy images on KODAKOne using KODAKCoin and the owners of the images would receive payment in the form of KODAKCoin. Among the many problems Sahm Adrangi has with this is that no one in their right mind wants to get paid with some cryptocurrency whose value isn’t backed by anything and the value of which fluctuate wildly.
Another thing that Sahm Adrangi said in his report was that Eastman Kodak Company has had poor fundamentals for years and their entering the cryptocurrency industry will do nothing at all about that. He also said their capital structure is buried in debt and, again, entering the cryptocurrency industry wouldn’t change that fact either. When Eastman Kodak had made their announcement their stock shot up close to 200%. Sahm Adrangi said this was entirely unjustified and it was all built on hype and speculation. He expected their stock to soon tank once investors understood what was happening.
Prior to opening Kerrisdale Capital Management, Sahm Adrangi had been an analyst in the financial industry. He had worked for three firms which were Deutsche Bank, Longacre Fund Management, and Chanin Capital Partners. He has experience in a few different specialties such as restructuring, distressed debt credit, equity funds, and leverage financing among others. His hedge fund manages about $300 million in assets and it was founded in 2009.