Did David Einhorn Short Herbalife Ltd. (HLF) With Bill Ackman?

Page 1 of 2

Shares of Herbalife Ltd. (NYSE:HLF) have fallen over 38% since last Wednesday, amid reports that Bill Ackman, manager of the hedge fund Pershing Square Capital Management, is short the stock. Check out Bill Ackman’s full 13F portfolio here. The nutritional supplement company has been walloped by Ackman’s claims that it is a “pyramid scheme,” according to CNBC.

PERSHING SQUARE

In the time since, we’ve seen a war of words between Herbalife and Ackman, which began shortly after the story surfaced last week. On CNBC, Herbalife’s CEO Michael Johnson called Ackman’s allegations “blatant market manipulation,” adding that “we want the SEC to take action.”

Johnson’s chief claim: “This appears to be another attempt to illegally manipulate the market by a group of short sellers.”

In a presentation last Thursday morning at the Sohn Conference Foundation in Manhattan, Ackman detailed his short thesis on Herbalife, breaking down his argument into four pillars. These pillars include: (1) questionable R&D practices, (2) mentions that Herbalife buys their credibility, (3) the assertion that around 90% of payments are incentive-based, and (4) evidence of bubble-like trends in multiple countries. See our full recap of his presentation.

During his subsequent media tour, Ackman shared more details about his research, and most notably, the size of his short position. In an interview with Bloomberg Television, the hedge fund manager discussed his short position in Herbalife, saying, “It is enormous. It is over 20 million shares…We are short over 20 million shares.”

In an interview with CNBC, Ackman said that he established the position “seven months ago, or so.”

This disclosure is crucial to understanding the full scope of the battle that’s shaping up between Ackman and Herbalife.

Continue reading to see just how…

Page 1 of 2
Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

The 10 Largest Pharmaceutical Companies In the World

The 10 Most Expensive Android Apps

The 9 Most Expensive Designer Bags in the World

The 7 Most Expensive Real Estate in the World

The 10 Most Expensive eBay Items Ever Sold

The 10 Most Expensive iPhone Apps

The 9 Most Expensive Designer Shoes in the World

The 10 Most Expensive Cigarette Brands

The 10 Most Expensive Law Schools in the US

The 10 Best Wall Street Movies

The 10 Most Expensive Golf Clubs Ever Sold

The 10 Most Expensive Golf Memberships

The 10 Best Disney Characters Ever Created

The 8 Best Foods for Gaining Weight

The 10 Most Expensive Colleges in the World

The 7 Most Memorable Ad Campaigns of All Time

The 7 Most Expensive High Schools in the World

The 10 Electric Vehicles with the Longest Range

The 10 Cities with the Worst Drivers in the World

The 10 Most Expensive Dresses Ever Created

10 Islands to Visit Before You Die

10 Famous Celebrities Who Needed Rehab

The 15 Countries with the Largest Oil Reserves

The 10 Most Overused Excuses in the World

The 5 Best iOS Apps You Can’t Get on Android

5 Companies Damaged By Social Media Blunders

The 10 Most Legendary Blues Songs

The 10 Most Lawless Places in the World

4 Reasons China is a Threat to the US

The 17 Most Sugary Drinks in the World

The 10 Most Ruthless Rulers in History

The 10 Greatest Generals in History

Top 8 Travel Destinations for 2015

The 10 Safest Dog Breeds for Children

The 10 Most Stolen Vehicles in the US

The 7 Most Expensive Celebrity Weddings

The 10 Best LoL Teams in the World

Top 10 Worst Marketing Campaigns Ever Produced

Top 5 Diets that Help You Lose Weight

The 10 Best Ways to Stay Awake

7 Artists That Switched Musical Genres

The 10 Most Expensive Cities to Live in New Jersey

The 10 Best High Schools in New York

The 10 Countries With the Least Gender Inequality

The 6 Biggest Musician-Manager Feuds

The 10 Countries with the Cheapest Gas Prices

The 7 Most Theatrical Bands of All Time

The 8 Worst Band Breakups of All Time

The 10 Most Important South American Leaders

The 7 Most Successful Casting Show Winners

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!