In June 2018, Kerrisdale Capital was firmly backing Intelsat, and in a research note to its hedge fund clients, forecasting the massive profits that it said would follow on from the restructuring of C-band spectrum over the US.
It now emerges that Kerrisdale has largely cashed in on its profits and dramatically reduced its Intelsat holdings, selling 7.79 million of its 8.48 million shares, and banking some $234 million in the process.
Kerrisdale had quietly amassed its Intelsat stake in the period to June 2018 and helpfully suggested that the satellite operator could benefit by a “staggering” amount and specifically from the proposed C-band restructuring which could lead to Intelsat having a stock market value of $151 per share. Kerrisdale said that “shares in Intelsat and SES are set to launch” and that the “Intelsat/SES [C-band] plan will prevail”.
A filing to the SEC by Kerrisdale says it still holds 687,000 shares (as at the end of September 2018) in Intelsat. During September Intelsat’s share price was around $30. Its closing market price on January 3rd was $22.