Shervin Pishevar invested in transportation giant, Uber, early in the game in addition to being the founder of Sherpa Capital. In general, when he speaks, some people listen but what’s up with his recent 21-hour Twitter rant? During that extravaganza of Tweets, Shervin Pishevar touched on a wealth of topics in his 50 Tweet (500-words) marathon, from Bitcoin and bonds to SpaceX and immigration.
He really hasn’t had much at all to say since all of those sexual misconduct allegations at Sherpa, the company that he subsequently departed from. Perhaps it’s because one of those allegations included rape. Now, it seems that he won’t be silenced at all. But 21-hours? Seriously? What could he possibly have to say of interest for almost an entire day? Well, let’s see:
- He predicted the imminent decline of our country’s economy.
- Another prediction is that Bitcoin will fall to between $2,000 and $5,000, however, he also predicted that it will rise again albeit slowly.
- In addition, Shervin Pishevar predicted a “financial storm” was coming, including a 6,000 point stock market drop during the next few months.
- He also predicted Silicon Valley’s imminent demise as the stronghold that California has on both culture and tech innovation comes to an end. That prediction came right after he took a break from tweeting to have dinner.]
- Another prediction is that the volatility of bonds will be sending ripples through the markets.
- He also said that the United States will be losing to countries such as China, especially in the area of infrastructure.
- What else? Well, how about a shift that only comes about once in every thousand years? And, the majority of those 50 tweets involved warnings regarding unstable conditions in the U.S.
All in all, Shervin Pishevar seems to be painting a rather dismal picture of the country’s future economy. And, the fact is that, in the past, Shervin Pishevar has enjoyed some success when it comes to the anticipation of impending economic downturns. Case in point; in 2008, he discussed the identity crisis that Facebook would eventually undergo. Hmmmm, could he be right this time, too?
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.