Even with several stock market gurus suggesting of an overvalued US stock market, the bull market has not broken for equities. It seems in recent years that hedge funds are out of date and buying any of the major US stock indices is all an investor needs to make substantial gains. While it appears the market can only continue to climb higher, there are investors like Sahm Adrangi who feel that there are always opportunities to short-sell.
investment Sahm Adrangi is the founder of Kerrisdale Capital Management and made a reputation for himself as an investment banker exposing Chinese companies who were scamming investors. His work encouraged the SEC to investigate many of these companies. In early May, he was a speaker at a conference in Manhattan to discuss the new challenges the market imposes on short-sellers. The conference specifically pointed out to current market trends such as the extended bull market and the unpredictability regarding government regulation. Many of the investors at the conference were extremely skilled traders who had been successful in the past at short-selling and were now finding that their past strategies had very little success in the current market conditions.
Sahm Adrangi spoke about “Ad Fraud” and the opportunities this gave to investors if they could spot it. This topic was important at the conference because Ad Fraud has been becoming a bigger problem over the years and can be tied to an equity’s future value. Sahm Aorangi’s ability to predict a company’s future value based on the corrupt actions some of them take has enabled him to grow Kerrisdale Capital Management into the company it is today.
Followup to my last tweet —
— Sahm Adrangi (@SahmAdrangi) May 16, 2018
No one knows how much longer equities will continue this epic bull run. Sahm Adrangi still believes there is room for fundamental analysis and that even the strongest of bull markets will present short sellers with opportunities.