We have so many companies today that promise fantastic and profitable results that turn out to be duds. One of the few trusted authorities today that evaluate the worth of companies’ products is Kerrisdale Capital’s Sahm Adrangi. His recent analysis today involves the short position and negative report that Kerrisdale Capital has over Proteostasis Therapeutics, Inc.
On March 20, 2018, it was announced in PR News Wire that Kerrisdale Capital placed a short position on Proteostasis Therapeutics, Inc (PTI) because of its reputation of seemingly hiding important negative information under the rug, in an effort to hide its incompetencies.
PTI right now is still in its developmental stage, but the high rise of over 187% in its market value is putting Kerrisdale in a position to judge it as questionable. PTI is currently a biopharmaceutical company that is developing the PTI-428 drug, but its rise to the high percentage right after FDA granted its drug the Breakthrough Therapy and Orphan Drug recognition seems to be dodgy.
In Kerrisdale’s analysis, this rise in market value could just be a plain result of an unjustified hype. There’s a lot of signs showing that PTI-428 is likely going to be ineffective, and such assessment could put its value down. There’s also a pattern of low-quality data and troubling issue of burying information in the PTI, and this is something that Kerrisdale finds difficult to overlook.
Sahm Adrangi’s Reputation
We should also know a bit more about Sahm Adrangi reputation himself to assess how credible his take is on the assessment. First of all, Sahm Adrangi is the Chief Investment Officer of Kerrisdale Investment. His current skill set was refined first when he was studying BA in Economics at Yale University. He also worked for Deutsche Bank as a non-investment grade bank debt officer, and it was there that he was able to learn how to accomplish successful debt refinancings to companies.
Sahm Adrangi’s known investment style is mostly value-oriented, and he is a generalist in his area of expertise. With Mr. Adrangi’s help, Kerrisdale Capital continues to be a fundamentally-oriented investment manager that handles about $300 million of combined assets across a variety of investment communities.