Sahm Adrangi, the founder of Kerrisdale Capital, has released a negative report outlining the firm’s short position regarding QuintStreet Inc. The former is an online marketing firm whose stock traded at quadruple price recently. Investors have developed prospects on the positive direction the company is moving, having wallowed in beleaguerment for a quite a long time. Nonetheless, Kerrisdale is of a contrary opinion. There are serious doubts that about the quality of QuinStreet’s business model and its sustainability. Kerrisdale Inc. believes that QuinStreet is benefiting from a series of sham web transactions.
In the report, Kerrisdale outlines QuinStreet as a low-quality online marketing firm. Speaking at the 2015 FTC forum on Lead Generation, QuinStreet’s SVP OF Corporate Development, Legal & Compliance, “The reality of things is that you’re liable. You may try to disclaim it…but if your brand is affiliated to a litany of bad activity, there are consequences.”
Mistreatment of clients
According to Sahm Adrangi’s report, QuinStreet promises its clients easy comparison shopping which involves getting insurance quotes and mortgage rates simultaneously. But what they [clients] get are links that lead consumers to obvious options such as Geico for auto insurance and Quicken for mortgages.
Apart from its shoddy business model, QuinStreet has many shortcomings in many fonts. In fact, the company has a surprising 237 employee reviews on Glassdoor.com. It rated 2.4 out of 5 against it competitors – of whom have at least a 3.9 rating. They include EverQuote, MediaAlpha and TheZebra among others.
About Sahm Adrangi
He is the Chief Investment Officer and founder of Kerrisdale Capital Inc., an investment manager. Before founding the company, Sahm Adrangi served as an investment analyst in Longacre Fund Management. He was responsible for conducting credit fund and equity fund analysis.
Previously, Sahm Adrangi worked at Chanin Capital Partners, a bankruptcy restructuring firm. During his spell at Chanin, he assisted creditors to understand out-of-court and Chapter 11 bankruptcy restructuring plans and other creditors of financially distressed firms.
Sam Adrangi is a knowledgeable individual in the financial industry, having majored in commerce studies. He studied at Yale University where he graduated with a Bachelor of Arts certificate in Economics.