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 Highest Grossing Musicals on Broadway

The Most Successful Reality TV Stars

Cheapest Cities to Visit in the US

Most Expensive Summer Camps

Most Expensive Animals in the World

Most Expensive Specialty Crops in the World

Movies That Took Ages to Make

The Longest Hollywood Films Ever Made

Most Expensive Concert Stages

The Richest Bands of all Time

10 Most Corrupt Countries 2013 List

10 Countries with the Highest Quality of Life Index

Most Expensive Mattresses in the World

5 Smallest Countries by Land Area

The Ultimate Heartbreak Songs

Richest Teenagers in the World

10 Most Haunted Places in America

10 Best Places to Retire in Florida East Coast

Top 10 Places to See Before You Die

Top 8 Countries in the World Where Justice Prevails

10 Richest States in America

15 Wealthiest Countries in the World

Richest Singers in the World

Most Expensive Tasting Menu in New York City

Most Expensive Baby Items in the World

Most Expensive Hotel Suites in Vegas

Most Expensive Brunch in New York City

Most Expensive Beef Cuts in the World

25 Best Colleges to Get a Job

Top 10 US Supermarkets

The 25 Most Dangerous Cities in the World to Visit

Most Expensive Xbox Games

Top 11 Cities Where Billionaires Live

Top 10 Most Charitable Companies in America

Most Expensive Seafood in the World

The 10 Wildest Conspiracy Theories

The 10 Best Job Markets in the US

Top 10 Accounting Scandals of All Time

The 25 Biggest Cities in the World

Top 10 Best Paying Virtual Jobs

Most Expensive Leather Shoes in the World

Top 6 Things to Buy in March

The 10 Most Stressful Jobs in America – 2014 List

Top 10 Jobs for Introverted People

Top 10 Honeymoon Destinations in the World

Top 10 Highest Paying Jobs in the World

Most Expensive Day-Care in New York City

The 10 Cheapest Places to Retire Abroad

Top 10 Most Expensive Luxury Cars in the World – 2014

Killer Small Business Ideas

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!