Soon after the publication of last week’s piece, former Wall Street bond trader, credit analyst, and credit portfolio manager reached out with the aim of discussing GNC Holdings. Over the weekend, the retired manager found time to speak and had a lot prepared based on previous articles written.
In response to the last thesis on GNC, the retired credit analyst shared the opinions of the argument wholly. He added that on several occasions, he has taken to the stores, conducted channel checks as he and his wife moved to Chapel Hill area. Sahm Adrangi acknowledges that there is a decent traffic trend in the region. However, he points out that there is a disconnect between the bears’ thesis and his experience in the stores. He adds that there is an undeniably big lag between now and when it shows in the numbers. Sahm Adrangi says that for a long time now, Wall Street has lacked the imagination to envision the turn. Wall Street still employs the ratios and financial models of the old GNC.
Another interesting thing that Sahm Adrangi said is that GNC is trading poorly because the bond folks are paying attention to equity as their measure. Additionally, the bond folks like the idea of having a big market capitalization cushion. The equity is used as the proverbial white smoke to signal that it’s clear to make trades. Additionally, the Titan offered key insight that was missed on the pieces before. He pointed out that Boybuilding.com had laid of15% of its staff on December 1st, 2016. For more info about us: https://twitter.com/sahmadrangi click here.
Sahm Adrangi career began with an internship position at Merrill Lynch desk in New York. He worked at this institution for three years trading credit and bonds. Later, he moved to Longacre and took up a credit trading role. He would then move to Paulson&Co. At this company, his responsibility was in shorting mortgage bonds. At Bowery Investment Management he worked as a credit PM for three years. In June 2015, he quit Wall Street.
It was not until 2009 when Sahm Adrangi formed Kerrisdale Capital Management. Today, he is the chief investment officer. Under his leadership, Kerrisdale Capital Management has grown to manage over $150 million as of mid-2017.