Sahm Adrangi is a renowned investor around the world. He has done businesses that have turned out to be very successful. He explains the development of two information technology firms and how they have related to each other. These IT firms are Cognizant and Luxoft.
Sahm Adrangi currently works at Kerrisdale Capital, and this has about $150 million that he manages and has held Luxoft (a software firm) business shares since the beginning of 2015. He says that they doubled their position in the third quarter because the decreasing stock created a great opportunity.
Sahm Adrangi liked Luxoft because it was similar to Cognizant, which was at some point Kerrisdale Capital’s second largest holding. Luxoft has been slowly selling off its stake in Cognizant and we are told the reason these two information technology firms have changed positions. Luxoft and Cognizant have got variation in programming and valuation in that Luxoft programming is way better compared to Cognizant.
Sahm Adrangi explains how Cognizant was about fifteen years ago and he says that it was the size of Luxoft. The reason Luxoft has done so well is because of the high demand for software developer work. Luxoft has had its stock rise up to 30 times. Luxoft is unique because it has experienced programmers who not only design websites but also focus on much profitable projects. These programmers have graduated from renowned universities that offer quality education on engineering courses across the world.
Luxoft concentrates on just a few major customers while Cognizant is more diverse and this way Luxoft is not as valued as Cognizant. This is one difference that makes people value Cognizant more than Luxoft however the latter is still at its young stages and with time it may reach out to more people therefore gaining more value. Luxoft has great potential to grow and expand throughout the world in a few years.
Sahm Adrangi is highly experienced in matters business and also economics and therefore this has led to his success in the business sector. He is able to manage Kerrisdale Capital a company that is worth lots of millions.