The unconventional venture capitalist took to Twitter to share his thoughts regarding the US economy. He shared his thoughts elaborately in a tweet storm for 21 hours, giving out 50 points explaining why the U.S. stock market will drop by averagely 6000 points in the few months to come.
In one of the tweets, he touches on government bonds and explains how their power are not limitless in recorrecting the market. Shervin Pishevar goes on to say that quantitative easing, a process that involves central banks purchasing bonds, is a tool that can correct the market. However, he argues that this tool has been used so much to continue being useful.
Shervin Pishevar argues in another tweet that inflation has been exported. He critiques the notion that the American economy is trending upward globally saying that he doesn’t find inflation a remedy. Shervin Pishevar goes on to express his lack of faith in global trade deals under the present administration. Shervin also touches on big funds, particularly Volatility Indices and Managed Future Funds. He predicts failure and believes there is a reason to expect a significant risk.
Some of his other predictions include instability of bonds will affect other markets and Bitcoin will drop significantly but slowly rise again. When it comes to infrastructure, the country will lose to a country like China, with the few numbers of start-up companies, the large companies will continue to hold much power, among other arguments concerning the country’s economy.
Shervin’s sudden twitter outburst is difficult to parse. It is not clear why he chose to air his views on economic issues of the country, or whether the return has something to do with the lawsuit he dropped the previous day accusing Definers Public Affairs of conducting a smear campaign against him. However, his concerns appear to be beyond the 6000 points decline he is foreseeing. He briefly mentions the challenges within nationalism, politics, and cultural trends. For all we know, there might be a bullseye within his 50 tweets.
Sahm Adrangi, the founder Kerrisdale Capital Management, is reputable for maintaining an excellent growth trajectory that has seen him increasing assets from $1million to $300 million between 2009 and 2014. As the CEO of the research-based Investment Company, he manages the operations that involve making long-term investments and driving unique business situations. Sam started the firm in 2009 after exiting from Longacre Fund Management where he was responsible for the management of more than $ 2 billion worth of debt.
Sahm Adrangi became popular in the realm of investment banking after his exposure of a fraudulent Chinese firm in 2010. His research is accredited for fostering the legal actions that were taken against these Chinese firms. His pioneering work at Kerrisdale drove him towards correcting popular misconceptions regarding concerning stocks including the underestimated longs as well as the overhyped shorts. Currently, he is primarily involved in the biotechnology, telecommunications and the mining industries.
Aside from being an investments activist Sahm Adrangi also acts as a guest speaker in several conferences such as the Sohn conference. These roles have enabled him to be featured in various publications including the New York Times. He was selected as one of the Titans in a 2014 Hedge fund survey. Sahm Adrangi is also celebrated for multiplying investor capital up to 10 times, which enabled some of his customers to reach high annual targets.
- Adrangi’s success in entrepreneurship offers a refreshing view of the frequent complaints as well as regulations that are characteristic of the business world. He has managed to overcome the rising costs coupled with the institutionalization that are common in the hedge fund industry. His determination also enabled the firm to overcome the strong barriers of entry that have made it almost impossible to sustain and run a hedge fund company.</li>
The investment process used by Sahm Adrangi is different owing to the fact that the CEO began his career in credit that mostly involved refinancing efforts and advising committees on issues such as bankruptcy. His unique approach drove him towards focussing on cash flows, as opposed to the method used by other investors that fixate on earnings that are divergent from their actual cash flows.