QuinStreet, Inc. is the company that is being highlighted by Sahm Adrangi’s Kerrisdale Capital for suspicious and phony traffic to its affiliated websites which generate a profit for the company when users click on links and fill out forms. This suspicious activity has come under fire amid QuinStreet’s recent revenue growth, leading investors to believe that the company is sound. What the market and management have overlooked is that this revenue growth has come from a single client.
In light of this evidence, QuinStreet, Inc. has been dubbed a low-quality company with a very flawed business model by Sahm Adrangi’s Kerrisdale Capital report.
Sahm Adrangi Kerrisdale Capital is a private investment manager that has published a negative report on QuinStreet, Inc. While investors are looking at QuinStreet’s revenue growth as an indicator of the company’s stability, Kerrisdale Capital has cast doubt on the company’s quality and sustainability with recent evidence it has benefited from sham web traffic.
Kerrisdale Capital maintains a short position in QuinStreet, Inc. and will stand to benefit if the company’s share prices fall.
Sahm Adrangi is the founder of Kerrisdale Capital Managment and is the Chief Investment Officer. He holds a Bachelor of Arts in Economics from Yale University. He has worked in the financial industry in many capacities and has a vast array of experience. Before founding Kerrisdale Capital he worked as an investment analyst with Longacre Fund Management. His role in this position was to provide investment analysis for both the credit and equity funds.
His prior positions include working for Chanin Capital Partners in the bankruptcy restructuring group and also with Deutsche Bank in the leveraged finance group.
Kerrisdale Capital is an investment manager that focuses on long-term investment values and special event-driven situations. Kerrisdale shares its investment ideas with a broad range of investors in the community. Kerrisdale was founded in 2009.