Kerrisdale Capital Management issued a report about QuinStreet, Inc. recently that was quite negative. QuinStreet is an online marketing firm headquartered in Foster City, CA. It was founded in 1999 and has something of a sketchy past including having to pay a fine of $2.5 million when it was discovered they were illegally using advertising targeted at veterans in order to get them to become students at a number of for-profit universities.
While investigating QuinStreet’s current advertising tactics Sahm Adrangi, the founder and CIO of Kerrisdale Capital, and his team of analysts saw that QuinStreet is once again engaging in suspicious activities. Sahm Adrangi says that QuinStreet is sending a lot of phony traffic to websites under their control. This creates a stream of income for QuinStreet at the expense of the clients they have signed up. The report also states that just about all of the revenue growth at this company has come from just one of their clients which isn’t a sustainable business model. He called QuinStreet a firm whose business model is completely broken.
Before issuing the report on QuinStreet, Kerrisdale Capital had taken a short position on it. This means if QuinStreet’s stock value plunges Kerrisdale will make investment gains. Sahm Adrangi indicated in his report that he would be holding a telephone conference later that day where he and his team would divulge the information they have documented about QuinStreet.
Sahm Adrangi was just 24 years old when he founded Kerrisdale Capital in 2009. Prior to that he had worked for three firms in the financial industry which were Chanin Capital Partners, Longacre Fund Management, and Deutsche Bank. He had been an analyst for each of these firms and developed knowledge about leveraged financing, restructuring investments, distressed and bankrupt businesses, and other areas of finance.
The hedge fund Sahm Adrangi manages is primarily invested in value stocks that he holds for a long time. However, when Sahm Adrangi sees a special situation such as QuinStreet he is willing to short a company’s stock. This type of investing is starting to become known as soft activism investing.
Igor Cornelsen is a successful Brazilian entrepreneur and an investment banker who has made a fortune for himself and the companies he has worked for. The genesis of Igor’s journey to the investment world started way back in 1965 while he was a student at the Federal University of Parana. Initially, he had enrolled in engineering school, but two years into his studies he decided to also study economics. This was a decision that would heavily influence his career and fuel him to success.
Igor graduated five years later in 1970 and took a job as an investment banker. During his time, calculators and computers were not that rampant, and it was common for banks to hire engineers who were able to calculate complex subjects such as the rates of compounded interest. Igor was a determined and professionally aggressive banker and his service and dedication to the finance discipline landed him in Brazil’s capital Rio de Janeiro at Multibanco.
Igor Cornelsen would stay with Multibanco where he was also named CEO, until in 1978 when the Bank of America purchased Multibanco. Consequently, he had to switch to Unibanco which was the top investment firm in Brazil. Igor worked with Unibanco for seven years and left in 1985 at the time inflation rate was high and joined Libra Bank PLC which was a subsidiary of London Merchant Bank.
His move to London Merchant Bank would prove to be a very crucial move because Igor was paid in dollars which allowed him to invest in Brazil. During this period, he would collect high-value assets that were depreciating due to the inflation in Brazil. Igor was always a man on the go and sought new challenges every now and then. He and a couple of his colleagues would move to Standard Chartered Merchant Bank where he was a member of the board for seven years. Igor would eventually leave Standard Chartered and start his investment firm where he offered similar services regarding investments.
Today, Igor is still in the market and he is based in Sao Paulo. He says he relies on Reuters to get his information because he is certain that the information will be credible because Reuters are unbiased in their reporting. Igor continues to research and study economies. He buys assets in economies that are improving and sells off in the economies that have a poor economic future.
More about Igor Cornelsen
Igor is the proprietor of Bainbridge Inv Inc, which is located in the Bahamas. His primary goal at the company is to come up with creative and fun methods to experience success in the stock market. Other than that, Igor is largely retired and balances his time in his two homes in Florida and Brazil. He practices investment as a hobby and also loves to golf when he finds the time.