Pershing Square


[via @cgasparino]

  • 22 Apr 2014 at 3:48 PM

Bill Ackman Doing Okay For Himself This Year

Every Ackman investment appears to have made money this year, including Beam, the Herbalife short and Platform Specialty Products Corp. Nutritional supplement maker Herbalife, for example, has been hit by reports of several government investigations into the company, which has helped push the stock down about 26 percent so far in 2014. The Pershing Square International fund is up 11.1 percent net of fees in the first quarter alone, according to a report by the HSBC Alternative Investment Group. [NetNet]

Bill Ackman’s Boyish Visage To Be Preserved For Posterity

The Pershing Square Capital Management chief will never have to grow a beard to hide his frown lines if he can pull off his latest effort. Read more »

The Pershing Square chief thinks that Fairholme Capital and Perry Capital will win their lawsuits re: the government stealing Fannie Mae and Freddie Mac from their shareholders and directing every last cent of profit into Jack Lew’s slush fund. And he’s figured out how to make even more money from said victory than they will: It begins with not having to pay lawyers to sue the government and ends with common shares doing better than Fairholme and Perry’s preferred shares. Read more »

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. Read more »

The proposed order was drafted by Herbalife and Dana Bostick, the former California distributor who is suing the company under the state’s “chain letter,” or pyramid scheme, law. It’s common for parties to come up with protective orders that forbids sharing of confidential information obtained during discovery — but the judge balked when Herbalife went a step further and suggested a “highly confidential, lawyers’ eyes only” category for “high-risk” experts that have had anything to do with Pershing Square since 2010 or might in the next three years. It defined a “Pershing Square person” as “any present or former directors, officers, executives, partners, principals, trustees, employees, agents, attorneys, accountants, advisors and representatives, or any other person(s) known, believed or suspected to be acting or purporting to act on its behalf, now or at any previous time since January 1, 2010, including but not limited to William Ackman and Sullivan & Cromwell LLP.” [NYP]

“It is not the role of Herbalife’s auditor to determine if the company is a pyramid scheme. Rather, that determination depends on whether distributors earn more from recruiting new distributors than from retail sales to consumers who are not distributors. The few Herbalife distributors that make money earn the vast majority of their profits from recruiting. Herbalife is a pyramid scheme that will be shut down by regulators.” [Earlier]