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]

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Comments (10)

  1. Posted by USOC | February 13, 2014 at 3:08 PM

    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. Posted by Guest | February 13, 2014 at 3:16 PM

    Count me in.

    -J Gundlach

  3. Posted by guest | February 13, 2014 at 3:24 PM

    the hell?

  4. Posted by CF no A though | February 13, 2014 at 3:42 PM

    So I should go long Herb for life?

  5. Posted by AnOn | February 13, 2014 at 4:05 PM

    you bet!

    –uncle carl

  6. Posted by tex2 | February 13, 2014 at 4:19 PM

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

  7. Posted by ghost of mark hughes | February 13, 2014 at 4:43 PM

    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.

  8. Posted by Quant me maybe... | February 13, 2014 at 5:39 PM

    See 'ghost of mark huges' below.

    > That's how you do it tex.

  9. Posted by TheodoreBallgamePhD | February 14, 2014 at 10:21 AM

    Ditto.

    -Ping

  10. Posted by Isaac Comer-Wyrd | February 17, 2014 at 1:36 PM

    That was funny. So I clicked `Like'.

    Thing is though–Ackman's actual claim is correct. Herbalife is, in fact, a vampiric soul sucking leech like organization and a blight on the poor. *shrug*


    Furry cows moo and decompress.