Kerrisdale Capital Management is not new in betting against companies. The company has raised about $100 million from various investors to wager against a solitary stock. This is the first time that Kerrisdale is raising a joint investment as it speculates to bet against the stock of a public company that is about to be disclosed. The hedge fund managers have caught their competitors by surprise as they have managed to consolidate an enormous amount of money within a short period. Shane Wilson, an analyst at Kerrisdale, together with Kerrisdale’s’ manager SahmAdrangi are using strategies such as making videos, reports and their website to lure investors to be part of the company’s most anticipated project. Kerrisdale is already purchasing stock to set up a position in the target company which will most likely be disclosed to the public in May. Currently, Kerrisdale Capital Management is in-charge of around $500 million with an inclusion of the already amassed funds.
SahmAdrangi, 33 years old, is the founder and current Chief Investment Officer of Kerrisdale Capital Management located in New York City. He was born in Canada to an Iranian family and holds a Bachelor of Arts degree in Economics from Yale University. At the university, Sahm wrote various columns for the campus newspaper. He began his career at Deutsche Bank where he assisted in structuring and syndicating non-investment grade bank debt. Later, he left Deutsche Bank to work for Chanin Capital Partners where he worked as a credit advisor. Moreover, Sahm represented bankrupt companies, bondholder committees, and bank debt holders. He was also an analyst at the multi-billion dollar Longacre Fund Management where he was in-charge of investment of analysis and fact-finding finding for equity and credit funds.
Sahm first made his name in the industry after accumulating millions from betting against fraudulent Chinese companies which he knew would collapse shortly. In 2009, he founded his firm Kerrisdale Capital Management. He traded the $300,000 he had from his parent’s contribution and his savings turning the capital into huge profits. His hedge fund portfolio value is estimated to be about $108,672,000.
Equities First is a spearheading universal lender equipping potential investors with alternative monetary solutions. The company has gained traction with stock loans becoming popular and innovative way of funding borrowers seeking for working capital with the company using stocks as collateral. Borrowers are able to enjoy low-interest rates with a mounting trend of stock and margin loans recorded particularly after the initiation of the world economic challenges. Click here for more .
Banking firms lend by banks have not been left behind in restructuring their terms and conditions. Traditional institutions that offer credit-based loans have made their lending criteria here and that has chased many applicants with a large portion of borrowers not meeting their minimum requirements. Equities First is offering affordable credits at a time when seeing funding from conventional lenders has become much difficult.
Equities First is listed among the most technological institutions regarding offering stock loans. There is realization that stock loans give a more essential way reaping more from loan. While prices of many commodities is still going up due to harsh monetary environments, the financial world is hit most by this traction. In fact, Equities First has operated to make sure that the current increasing trend of stock loan traction works well for its borrowers.
According to Al Christy, many loans are featured by higher interest rates hence majority of people cannot afford and others just keep away. Those seeking for stock loans are at freedom of getting greater LTV (Loan to Value) proportions even when the market stock price is low. Equity loans have ratios varying from 50% to 75% and interest of not more than 4%. Amounts issued are not conditioned for specific uses hence one of the factor contributing to the higher traction. A company that commenced by funding an orchard farmer using stock loan, has today benefiting uncountable potential investors with majority still reaping big in the sector.
Equity First Holdings, LLC, is a privately held company that has been providing unique loan and financing solutions to clients from all over the world for the better part of the last two decades. Founded in 2002, the company has mainly focused in providing both commercial and non-financial solutions to their extensive clientele.
Unlike most of the other conventional financial institutions, Equity First Holdings specializes in the products that have been specifically developed supply liquidity efficiently using a transparent and secure process while at the same time proffering the most attractive terms to their clients. The primary clients who work with Equity First are commercial businesses and individual clients who qualify to be classified as high net worth individuals.
The headquarters of the company are located in Indianapolis but the company has been spreading its wings throughout the years and today has offices in most of the world’s major cities including Sydney, London, Hong Kong, Perth, Bangkok and Singapore. More than 625 transactions have so far been successfully conducted by the company during the time that they have been in operation and that figure is only set to grow further. Equities at LinkedIn .
In addition to its unique choice of clientele, there are many other aspects of the company that clearly distinguish it from the rest. While most financial institutions will be very much against providing any loans to clients if the clients intend to use them on speculative investments such as trading in stocks and derivatives, Equity First Holdings adopts the exact opposite approach. They specialize in efficiently availing large, fast loans that can be immediately be invested in liquid markets even though such markets carry a much greater level of risk compared to regular, more conventional markets. And the best part of the products is that the company does not charge high interest rates the way most people would expect given the higher risks that they take.
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If having stock and want the wonderful deal from Equities First Holdings; you start by offering your shares as security. You will be charged 3 to 4% per year for 2 to 3 years, after which you pay them back and your entire shares will be returned back to your account. To many people, that is a bit cheap and also the deals come with cheaper interest rates. Even better, they offer a ‘non-recourse loan’ so in the event that everything turns out badly you can keep the money, and Equities First is left with your shares. So you don’t fear about the value, whether it appreciates or not. If it goes up, you reap the benefits without further charges. Equities First site even reveals to you this is an extraordinary approach to keep you away from the danger of holding the stock! You should simply express a goal to pay back the money towards the end of the plan. Another great thing is that your “main interests” are not affected.
Initially, the cash you get is put on a 3-day normal estimation of the share cost. It is to your greatest advantage to see that share cost is high as feasible for that period. Yet at a subliminal level, you are urged to knead your PR to push up the cost keeping in mind the end goal to get the best payout. Nevertheless, there are agreements with the arrangements. In case the stock value drops beneath the 80% of the provided loan, the loan is termed defaulted but there is nothing to fear as they do not come to your neck as seen with traditional loans. That rarely happens, but if it occurs, they give you a margin call and discuss with you on whether to end the deal or not. Some can decide to pay the cash or even walk away; that’s they keep the money but lose their shares.
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