Hedge Fund Kerrisdale Shorts Globalstar

Oct 7 2014 | 8:40am ET

Kerrisdale Advisers founder Sahm Adrangi is shorting satellite communications company Globalstar Inc, and he's happy to talk about it.

Adrangi, a former Longacre Fund Management analyst, gave a 67-page presentation on Monday, making his case against Covington, Louisiana-based Globalstar in the auditorium where Bill Ackman has announced some of this biggest bets, reports Reuters.

"Globalstar's equity is worthless,” stated Adrangi. “It is not worth $4 billion, or $3 billion, or $1 billion. It is worth nothing.”

Adrangi claimed the company's terrestrial low power service concept is "nothing more than the addition of one new Wi-Fi channel in the legacy 2.4GHz band—a licensed, for-profit channel that only authorized devices could use.”

Globalstar's stock—which had risen 58% over the past 52 weeks—began falling last week amid speculation about Adrangi's campaign. The drop continued on Monday after the presentation, with Globalstar shares falling from $3.01 to $2.26.

Adrangi, who manages about $300 million, didn't reveal the size of his Globalstar short. Litespeed Managment, D.E. Shaw & Co, Soros Fund Managment, York Capital Management and Millennium Management also own Globalstar stock, according to regulatory filings.

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