Reasons to Short Carvana Co. (CVNA)
Investment management company Kerrisdale Capital released an investor letter in June 2023 about its short position in Carvana Co. (NYSE:CVNA). A copy of the same can be downloaded here.
Kerrisdale Capital, founded by Sahm Adrangi in 2009 with an initial capital of less than $1 million, specializes in private investment management focused on value and special situations.
Sahm Adrangi is the Founder and Chief Investment Officer of Kerrisdale Capital Management, overseeing all aspects of the firm's development since its inception in 2009. Starting with less than $1 million, Mr. Adrangi has grown Kerrisdale Capital to manage approximately $400 million as of December 1, 2023. Renowned for his expertise in short selling and publishing research, Mr. Adrangi and Kerrisdale Capital are known for sharing their insights on stocks, including under-followed long positions and overhyped shorts, that are often misunderstood by the market. Kerrisdale's research aims to clarify widely held misconceptions about these companies' fundamental business prospects and is disseminated through their website, third-party investing-related sites, and Twitter. Early in his career, Sahm Adrangi gained recognition for his role in shorting and exposing fraudulent Chinese companies such as China Marine Food Group, China-Biotics, and Lihua International in 2010 and 2011. His scrutiny led to enforcement actions from the Securities and Exchange Commission against several of his targets, including China Education Alliance and ChinaCast Education Corp. Mr. Adrangi began his financial career at Deutsche Bank, where he focused on high-yield and leveraged loan debt financings. He later advised creditor committees in bankruptcy and out-of-court restructuring situations at Chanin Capital Partners. Following his tenure in investment banking, Sahm Adrangi spent several years at Longacre Management, a distressed debt hedge fund managing $1.2 billion in assets. He holds a Bachelor of Arts in Economics from Yale University.
Kerrisdale Advisers is a hedge fund managing discretionary assets totaling $536,508,194 for 4 clients according to their form ADV from March 2024. In their latest Q1 2024 13F filing, the firm reported $318,259,036 in managed 13F securities, with a top 10 holdings concentration of 46.52%. Kerrisdale Advisers' largest holding is VISA Inc., with 81,194 shares held.
