The portfolio manager behind George Soros’ controversial bet on Herbalife, Paul Sohn, left Soros Capital Management, but a spokesperson told CNBC that “Paul Sohn’s departure is unrelated to any position the firm may have or has had in Herbalife, ”
Soros made a huge bet in favor of Herbalife in 2013, buying 5 million shares. Currently, it still owns 2.6% of the company, but Soros has been selling shares of the multi-level marketer, since the stock has changed its course. Not long after buying shares, Herbalife rose higher, and many ridiculed the position of short seller Bill Ackman who not only wanted to see the company penalized, but had the objective of driving it out of business as a pyramid scheme. In the latter half of 2014, Ackman’s short position seemed justified, as the stock reversed directions and shed significant value.
Will you offer us a hand? Every gift, regardless of size, fuels our future.
Your critical contribution enables us to maintain our independence from shareholders or wealthy owners, allowing us to keep up reporting without bias. It means we can continue to make Jewish Business News available to everyone.
You can support us for as little as $1 via PayPal at office@jewishbusinessnews.com.
Thank you.
As often happens when hedge fund managers get on opposite sides of a trade, it got personal, with Bill Ackman complaining to the SEC that Soros had violated insider trading laws and Sohn bragged about his boss Soros, “George Soros broke the bank of England, and George Soros can break the back of Ackman.”
With shares of Herbalife tumbling in recent trading, Ackman might be right after all and Herbalife bulls may have egg on their faces.
