Prominent "Up And Coming" Hedge Fund Exec, Sahm Adrangi, Busted For Hamptons DUI, Cocaine Possession

One of the prominent "up and coming" managers in the hedge fund industry, which recently has been best known not for star names or outsized returns, but quite the contrary - lack of alpha creation and redemptions - noted short-seller Sahm Adrangi of Kerrisdale Capital, got into hot water over the weekend, when he was reportedly busted in the Hamptons on charges of drunken driving and cocaine possession over the weekend after getting into a crash.

Sahm Adrangi, 35, founder and chief investment officer of Kerrisdale Capital Management, was driving on Montauk Highway near Bluff Road at around 3 a.m. Saturday when he smashed into a Ford SUV, according to the East Hampton Star, according to the NY Post. The other motorist was injured. Police did not say if he was badly hurt.

Each driver told police the other had veered over the double yellow line before the accident. Cops ticketed Adrangi for speeding and then charged him with DUI after he refused a breath test. Adrangi was brought before the East Hampton Town Justice Court later that morning, and deferred his arraignment until his next court appearance, the report said.

Neither Adrangi, nor the firm responded to requests for comment. The Yale alum began his career with the leveraged- finance investment-banking group of Deutsche Bank.

Adrangi launched Kerrisdale in 2009 with less than $1 million and has grown it into a more than $500 million company, according to its Web site.

And while Kerrisdale has indeed posted tremendous returns since inception, generating a 1,152% compounded growth rate over the past 7 years, 2016 has so far not been too kind to Adrangi, who according to his investor letter was down 5.4% in Q2 and down 12.1% YTD. It is unclear if his LPs will be eager to brush this incident away in hopes of another 1,000%+ return over the next few years or if they will cut their losses and run.