UPDATE 1-Kerrisdale announces short position in First Majestic Silver Corp

Thu Sep 1, 2016 9:54am EDT
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(Adds detail, requests for comment and stock price move)

By Lawrence Delevingne

NEW YORK, Sept 1 (Reuters) - Kerrisdale Capital Management now holds a short position in the stock and via options of First Majestic Silver Corp., according to a report released Thursday by the hedge fund firm.

Kerrisdale, led by Sahm Adrangi, wrote in the report that the Canadian mining company is in a "speculative frenzy" and that its valuation is "now outrageously detached from reality."

Kerrisdale, which manages approximately $350 million and has lost money this year through July, said First Majestic Silver could fall between 70 percent and 80 percent from its current levels near $12 a share. The stock has gained approximately 267 percent this year through Wednesday.

U.S. listed shared of First Majestic fell more than 5 percent in early trading Thursday following news of the report.

Adrangi declined to comment. First Majestic did not immediately respond to a request for comment. (Reporting by Lawrence Delevingne and Chuck Mikolajczak; Editing by Frances Kerry)