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.
Want to Retire Early? Start Here (Sponsor)
Want retirement to come a few years earlier than you’d planned? Or are you ready to retire now, but want an extra set of eyes on your finances?
Now you can speak with up to 3 financial experts in your area for FREE. By simply clicking here you can begin to match with financial professionals who can help you build your plan to retire early. And the best part? The first conversation with them is free.
Click here to match with up to 3 financial pros who would be excited to help you make financial decisions.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.