What Top Investors Think Of These Receding Stocks

Herbalife Ltd. (NYSE:HLF) shares are down after Bloomberg published a report stating that Bill Ackman has ‘more dirt’ on the company. Ackman thinks the company is an illegal pyramid scheme and bet $1 billion against it in 2012. Although the FTC hasn’t ruled in Ackman’s favor, the famous hedge fund manager hasn’t given up. With today’s selloff, some long investors are selling first and asking questions later in regards to Ackman’s new information. Shares of Herbalife could also be down because fellow MLM Nu Skin guided lower for its third quarter.

While Ackman and 28.5% of the float is short, Herbalife Ltd. (NYSE:HLF) does have some famous long investors. According to SEC filings, Carl Icahn‘s Icahn Capital LP owns 17 million shares while George Soros’ Soros Fund Management owns 1.97 million shares. Overall, 34 funds owned $1.97 billion worth of the company’s shares representing 38.60% of the float on June 30, versus 35 funds and $1.57 billion respectively on March 31.

Disclosure: None