Ackman Still Confident Herbalife Ltd. (HLF) Will Fall; Discusses Mondelez International Inc (MDLZ), Valeant Pharmaceuticals Intl Inc (VRX)

Pershing Square’s holding in Valeant Pharmaceuticals Intl Inc (NYSE:VRX) is comprised of some 19.47 million shares valued at $4.33 billion, representing about 5.7% of the company’s outstanding stock. The fund manager is impressed at how the company has been able to make attractive acquisitions and efficiently integrate them in an otherwise fragmented and inefficient pharmaceutical industry. One such acquisition was Salix in April, the largest in Valeant Pharmaceuticals Intl Inc (NYSE:VRX)’s history, which amounts to $500 million of cost synergies. Another key acquisition, of Sprout Pharmaceuticals, came in August, whose Addyi, a female sexual dysfunction drug, could generate billions of dollars in sales as alternative treatments for the condition are almost nonexistent. While Pershing Square occupies the top spot on our list of Valeant Pharmaceuticals Intl Inc (NYSE:VRX)’s investors, Jeffrey Ubben‘s ValueAct Capital lies just at its heels holding some 14.99 million shares valued at $3.33 billion.

Despite an almost 53% surge in Herbalife Ltd. (NYSE:HLF)’s stock price this year, Pershing Square continues to hold a significant short position in the company. Although some analysts believe that the company’s troubles with the SEC and FTC are over, Ackman believes that the $4.93 billion global nutrition company is still the subject of active investigations from the SEC, FTC, Department of Justice, FBI, and State Attorney Generals on account of what he calls an ‘unlawful pyramid scheme’. Moreover, according to Herbalife Ltd. (NYSE:HLF)’s most recent financial results, sales in all regions have slumped, including North America, Central America, and the Europe Middle East and Africa region, save for China. Until now Herbalife Ltd. (NYSE:HLF) has paid about $90 million in legal costs, which even though they are marked under the non-recurring category, will only stop until the company shuts down or collapses on its own, according to Ackman. The largest investor of Herbalife Ltd. (NYSE:HLF) rooting for the company’s success is another famous activist investor, Carl Icahn of Icahn Capital. His fund holds about 17 million shares of the company valued at $936.53 million.

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