Ackman: Now Would Be A Really Good Time For Someone To Put A Stop To Herbalife

Even better than the last time he asked, when the only thing that happened was the opposite of what he wanted, and cost him a large sum of money.

Bill Ackman, the billionaire hedge fund manager who says Herbalife Ltd. (HLF) is an illegal pyramid scheme, says he now stands to gain more from the nutrition company’s demise than when he started. “We actually now have a much larger position notionally than we had initially,” Ackman said yesterday at the Harbor Investment Conference in New York. “If it were to disappear tomorrow, we’d make a lot more than had it just blown up the day after I gave my last presentation.”

Ackman, who said in November that his New York-based Pershing Square Capital Management LP had lost as much as $500 million on the investment, declined to update how much he has made or lost on the position. He also didn’t detail the current structure of his bet, which started when Pershing Square sold short more than 20 million of Herbalife’s shares in 2012. Last year, he reduced the equity short position in the company while maintaining his bet through long-term put options.

In sum, if this stock/company/regulator would just relent and do what Bill Ackman wants it to do, that’d be great for Bill Ackman. It’s not that hard, it’s pretty simple, in fact. Not sure why everyone is making this more difficult than it has to be, but regardless, now is the perfect opportunity to make up for past mistakes.

Ackman Says Herbalive Bet Carries Bigger Potential Gain [Bloomberg]

(hidden for your protection)
Show all comments

10 Responses to “Ackman: Now Would Be A Really Good Time For Someone To Put A Stop To Herbalife”

  1. USOC says:

    So many people want to stick it up Ackman's ass that we are going to add sticking it up Ackman's ass as a demonstration sport in 2016.

  2. CF no A though says:

    So I should go long Herb for life?

  3. AnOn says:

    you bet!

    –uncle carl

  4. tex2 says:

    Herbalife is very similar to Amway, the world's largest MLM scam. Google "stop the amway tool scam wordpress"

  5. ghost of mark hughes says:

    he is fooling no one. to the extent he can earn more than before he restructured, he must have rolled the short in to the jan 2015 50 puts. The stock would have to go to 0 for what he says to be true. By january of 2015. Zero! His best case is the FTC conducts a loooong, painful proctogy of HLF's methods, fines them big money – like ten's of millions of $$, and makes them behave in a manner that reduces EBITDA from $900mm to what, maybe $600-700mm? Resulting in a company that trades where, mid-50's to about here? Worthless calls, total wipeout of Pershing's poor LP's investment.