Kerrisdale Said to Raise $100M For Single-Stock Short

Apr 21 2016 | 6:14pm ET

Kerrisdale Capital Management has reportedly raised around $100 million for a very specific short position against a single stock.

Reuters is reporting that new vehicle, styled as a co-investment fund, is aimed at betting against the shares of an as-yet unnamed public company. 

"We raised a meaningful amount of capital (in) a very short timeframe, so clearly we struck a chord within the alternatives community," said Kerrisdale Capital founder and former Longacre analyst Sahm Adrangi in the Reuters article, which cited an email to investors. 

The targeted company is said to have a market capitalization above $10 billion and will be revealed in mid-May. Kerrisdale, which has begun taking a position in the stock, is preparing materials, including a report, video, and website, for use in a campaign to convince others of the fund’s thesis, Reuters said. 

New York-based Kerrisdale is a long/short equity manger with assets of around $500 million, including the capital raised for the co-investment fund, deployed into value and special situations investments. The firm has conducted so-called “activist short” campaigns in the past, betting against a stock and then bringing its reasoning public. The fund gained attention in 2014, when it booked a gain of 180%, and again last year with a 17% gain during a year when most hedge funds lost money. The fund has reportedly lost about 7% this year through March. 

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