Josh Arnold
Long/short equity

ARPI: A Fundamentally Flawed Business Model Gives Shorts An Opportunity

Thesis

American Residential Properties (NYSE:ARPI) is a newly-formed company that purchases, renovates and leases single family homes in the US on a large scale in order to generate a revenue and profit stream it can then distribute to shareholders. The company first issued stock in a private transaction in May of last year and has since become publicly traded earlier in 2013. The business model this company, and others like it, employs is fundamentally flawed promising returns of capital based upon false notions of economies of scale and management expertise. The fact is this is a poor man's game and I intend to prove that ARPI is enriching no one but its executives and that any shareholders that...

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