The $100 million short case against Dish Network


Kerrisdale Capital, a short-selling firm with one of the best track records in the industry, recently raised $100 million for a fund to bet against a single stock: Dish Network. The founder took his fight to CNBC's "Halftime Report" Wednesday to present his negative thesis and debate a bullish analyst.

The firm also posted a bearish report and launched a public website on the second-largest satellite TV operator in the U.S.

"Dish is losing its main [spectrum] asset in three years and the two buyers know this," Kerrisdale chief investment officer Sahm Adrangi told CNBC. "This will result in a price that is a lot lower."

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The title of the Kerrisdale report was "Dish Network Corporation (DISH): Calling Charlie's Bluff," referring to CEO Charlie Ergen.

"Now, with an imminent new spectrum auction promising to drastically reduce benchmark price expectations, Dish is in the weakest position it's been in for years," it said. "[The company is] sitting on a warehouse full of overpriced inventory, devoid of interested customers, and — with regulatory deadlines looming — running out of time."

The report also questioned the long-term viability of Dish's core TV business and predicted further subscriber losses amid increasing competition from over-the-top (OTT) offerings.

Kerrisdale is currently the 12th-best short-seller operating today, with an average one-year return of negative 32 percent for its past targets, according to Activist Shorts Research, an independent database tracking 100 similar firms.

Kerrisdale manages about $500 million in assets and its main fund generated 28 percent annual returns during the last five years, according to Reuters.

Watch the full "Halftime Report" debate video below, where Adrangi argues the short case against Dish Network bull New Street Research's Jonathan Chaplin.

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