There is a wealth of information on the web that serves to educate people on the best policies and methods of investing. However, when most publications masquerade to be financial articles, there is one that caught the attention of Sahm Adrangi. To be specific, a piece called An Ode to Those Who Wander got his attention. As a result, the hedge fund manager sought out its author to shed light and discuss GNC Holdings Inc.
Taking a peep into his life, he graduated from Penn State and landed an internship position at Merrill Lynch credit desk in New York. At the institution, he spent three years working at the credit trading desk. The three years’ experience helped him to take up a trading role at Longacre. With time, the self-made billionaire founded Kerrisdale Capital Management in 2009. The company has grown to manage over $150 million as of today.
The investor is widely known for publishing and short selling. He built his name in 2010 through to 2011 when he exposed fraudulent Chinese companies. Most of the Chinese companies including China Education Alliance became a subject of investigations by the Securities Commission. He is also widely known as a speaker at numerous conferences that seeks to enlighten people on the best practices of investing.
Taking a look at GNC, the former hedge fund manager said that he often visits stores and conducts his channel checks. He says that there is a decent traffic trend in the Chapel Hill area. Additionally, the entrepreneur acknowledges that there is a disconnect between the bears’ thesis and his experience in the stores. Further, he points out that Wall Street lacks progressiveness. As a result, they have stuck with financial models related to the former GNC. Additionally, unlike during his times, GNC is trading poorly as a result of using equity as the measure. GNC is currently using a significant market capitalization as a cushion.
While agreeing on the asymmetrical risk and reward for GNC, he was keen to offer insight on Bodybuilding.com. He shed light on information wholly missed in prior articles. It was clear that they had laid off 15 percent of their staff.
Sahm Adrangi’s Social Media: twitter.com/sahmadrangi