Ackman Conference Call Updates Several Key Positions, Claims Herbalife (HLF) Endgame is Near

Endgame of Herbalife is Nearing

Pershing said the endgame of Herbalife Ltd. (NYSE:HLF) is in sight. The fund thinks the departure of Herbalife’s CEO Michael Johnson is an extremely important development, as it has shook customer confidence. Bill Ackman has had a $1 billion short on Herbalife since 2012. He claims that Herbalife is a pyramid scheme that will soon collapse. There has been a bitter strife between Ackman and billionaire Carl Icahn on the issue of Herbalife, as Icahn thinks Ackman is “dead wrong” about the company. HBO’s John Oliver recently criticized Herbalife as well, which could be an important development according to Pershing.

Pershing Sells Zoetis

Pershing now has no stake in Zoetis Inc (NYSE:ZTS), selling off its remaining 2.72 million shares (as of September 30) of the company in the fourth quarter, though Pershing believes that Zoetis is a business which is “great” and has no element of aggressive politics. At the end of the second quarter, Bill Ackman’s hedge fund had a $1 billion stake in the New Jersey-based pets and livestock medicine company. The stock is up by over 2% so far this year.

Restaurant Brands Problems in the US

Pershing Square now has a 15% stake in Restaurant Brands International Inc (NYSE:QSR). The fund thinks that the Canadian Food chain is facing headwinds in the US, as Burger King struggles amid weakness in the restaurant industry. While restaurants in the U.S are facing problems amid cheap grocery store food items and minimum-wage increases, Pershing noted that Tim Hortons continues to perform well in Canada. Restaurant Brands reported third-quarter revenue of $1.07 billion, up from $1.01 billion in the same quarter of the previous year.

Disclosure: None