Icahn Now in Herbalife Fray?

Retail

Published: January 10, 2013 7:49 am

Last Updated: March 27, 2020 12:59 am

Hedge fund Pershing Square Capital Management and its CEO, William Ackman, made a lot of waves (and headlines) with Ackman’s takedown of Herbalife Inc. (NYSE: HLF). Calling the weight loss and nutritional supplement company a “pyramid scheme,” Ackman said he had taken a massive short position in the shares. Herbalife’s shares tanked.

Another hedge funder, Dan Loeb, of Third Point took the bet yesterday, announcing that he had acquired more than 8% of Herbalife. And now, to make the story even more interesting, the New York Post reports this morning that activist investor Carl Icahn may have sided with Loeb. Citing “sources,” the Post said, “Icahn is also believed to have taken a long position in Herbalife.”

Icahn has not commented on the Post’s report.

Herbalife’s shares gained about 4% yesterday and are up about 25% since the beginning of the year, after falling more than 40% after Ackman made his presentation. Herbalife is scheduled to present its rebuttal today at 9 a.m. ET.

Shares of Herbalife closed last night at $39.95 and are up about 3% in premarket trading this morning, at $41.15. The stock’s 52-week range is $24.24 to $73.00.

It’s Your Money, Your Future—Own It (sponsor)

Are you ahead, or behind on retirement? For families with more than $500,000 saved for retirement, finding a financial advisor who puts your interest first can be the difference, and today it’s easier than ever. SmartAsset’s free tool matches you with up to three fiduciary financial advisors who serve your area in minutes. Each advisor has been carefully vetted and must act in your best interests. Start your search now.

If you’ve saved and built a substantial nest egg for you and your family, don’t delay; get started right here and help your retirement dreams become a retirement reality.