Four years after the Wall Street fight between two billionaire investors over Herbalife, Bill Ackman marks a bad year. Not only Valeant Phrmacutical steep losses of $1 billion to Pershing Square hedge fund, Carl Icahn won the war over Herbalife, the nutritional supplements company.
With $12 billion under management, Achman’s Pershing lost around 20 per cent in the first half of 2016, securities filings show.
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.
Ackman had wagered big on Herbalife’s demise. In 2012 Pershing Square made $1 billion bet that Herbalife’s shares would tumble. Ackman labeled the company a Ponzi scheme, comparing it to Bernie Madoff fund ad to Enron, the energy group’s bankruptcy in 2001.
Putting his credibility a front, Ackman was arguing his case that Herbalife would collapse.
On Friday, the Federal Trade Commission, ruled the Herbalife is not a pyramid operation as Ackman had claimed but forced the company to pay out $200 million to injured distributors, and said the company will continue to operate.
Herbalife shares jumped 9.9 per cent, generously benefiting Icahn, who holds 25 per cent.
“Baby Buffett, ” Bill Ackman took a large short position, betting Herbalife shares would sink.
Icahn declared victory, saying Ackman had gotten his research on the company wrong.
“A significant part of my investment success is directly tied to our in-depth investment research and understanding of often complex and unique issues facing companies, ” he wrote in a statement.
“Unlike many of those that ‘shorted’ Herbalife, we did not rely on one or two research papers prepared by non-experts, ” he said.
Ackman noted that the Federal Trade Commission (FTC) had ordered changes to the way Herbalife does business, and that eventually those will undermine the company’s business model.
“We expect that once Herbalife’s business restructuring is fully implemented, these fundamental structural changes will cause the pyramid to collapse, ” Pershing said in a statement.
The Pershing short gambled on Herbalife shares falling from $47. But they have traded well above that level since February and finished at $65.25 Friday. For Ackman the short bet has cost the fund $20 million a year.
READ MORE: Herbalife
Bill Ackman’s Pershing Square continues his almost four years crusade against Herbalife. The hedge funed released its 18th video on Thursday warning investors about the alleged the company is a More…
Bill Ackman is about to hold a call defending his position in Valeant Pharmaceuticals. And ahead of this call, Herbalife, the nutritional supplement company Ackman is famously betting against and has called a pyramid More…
More than two years, Bill Ackman has been publicly campaigned against Herbalife, balming the company for being a multi-level marketer that sells weight loss shakes. Ackman believes Herbalife targets poor More…
The feud between billionaire investor Bill Ackman and Herbalife is heating up. Ackman has now accused Herbalife executives of “lawyering up” in expectation of federal criminal charges. Bill Ackman has More…
The FBI is investigating a consultant hired by hedge-fund manager Bill Ackman’s firm, looking to clarify they made false statements about the company’s business model to regulators, Bloomberg reported. Ackman More…
According to Bloomberg, George Soros just boosted his stake in Herbalife, but the news isn’t official quite yet. Soros and Carl Icahn are in one corner and Pershing Square manager Bill Ackman is in the More…
Bill Ackman is probably rejoicing or feeling his prophecy is going to be fulfilled as Barclay’s analyst Meredith Adler slashed earnings projections for the health shake maker by 30 percent. Activist investor More…
Bill Ackman, who must seem like Darth Vader to Herbalife’s management, has pronounced a death sentence on the company. This is part of his ongoing campaign to completely annihilate the company because he More…
Bill Ackman has been on an Ahab-like quest to harpoon the White Whale that is Herbalife, but Herbalife is striking back with a lawsuit against the activist investor, and claims he is guilty of stock manipulation, More…
Global nutrition company Herbalife issued an official response to comments made the previous day by activist investor Bill Ackman regarding its business model, claiming they came as no surprise and were only aimed More…
