Pershing Square

Story Of Pershing Square’s Investment In JC Penney Is Over

And it has ended with the handsome prince, practically perfect in every way, being forced to sell his shares in the company. He tried as hard as he could to change them for the better, but in the end, you can’t help people who won’t help themselves. Read more »

There comes a time in every hedge fund manager’s life when he must admit that he made a mistake. Sometimes that mistake was borrowing money from an investor fund to pay personal taxes. Sometimes that mistake was knocking off that hooker. Sometimes that mistake was thinking investors would be happy to hear that their one dollar at the beginning of the year was now just 17 cents. The point is, they erred in judgment, and while it’s unusual for men of their stature to admit such a thing, on the record or otherwise, they decided to step up and do just that.

For Bill Ackman, yesterday was sort of that day. Read more »


[Via ZH, Related: Dan Loeb’s High Road Is Paved With High Impact Enemas Administered By A 77 Year-Old Man]

Earlier today, a person, if a person were so inclined, could hop on his or her Bloomberg terminal, start a message to hedge fund manager Dan Loeb, and be greeted with a header that proclaimed “New HLF Product: The Herbalife Enema, Administered by Uncle Carl.” This line was an obvious reference to the figurative enema Pershing Square chief Bill Ackman has undergone at hands of the shake and supplement company and fellow money manger, Carl Icahn. After a flurry of articles pointing out Loeb’s anus-themed diss, the Third Point manager’s header was changed to “Always take the high road.” While one might quick to assume this meant Loeb had had a change of heart re: his previous statement, and had felt it’d been a less than diplomatic thing to say, doing so would make an ass of you and me. Read more »

If you missed out on the opportunity to lose 90% on Bill Ackman’s last can’t-miss single-stock fund, you’ve got nine days to ensure you aren’t kicking yourself this time. Read more »

  • 04 Jun 2013 at 1:58 PM

Bill Ackman Has A Dream

Financial Times: You have received a lot of good press, but there has also been some criticism of some of the investment stances you have taken and also your trading techniques, specifically the short selling. In a way, your philanthropy does not seem to fit with how you live your professional life. How would you respond to that assertion? Bill Ackman: I think we’ve accomplished more for society in our for-profit activities than in our not-for-profit activities. My work with the Pershing Square Foundation is a continuum of what I do in my professional life. When the Foundation sees a problem we always ask if there is a business solution. I think most of the criticisms you have heard relate to my position on Herbalife. If I manage to close down that company I will consider it the greatest achievement of my life. [FT]

It’s a little surprising that it took this long for someone to sue Herbalife, isn’t it? Whether or not Bill Ackman is right about Herbalife being an illegal pyramid scheme, he did take the trouble of writing like 300 pages about it, which is usually more than enough to inspire some intrepid class action lawyer to cut and paste the most damaging claims into a complaint and see where it goes. Perhaps they were stymied by converting from PowerPoint. Anyway here you go:

California resident Dana Bostick is suing Herbalife under racketeering and corruption laws, accusing the company of being an “inherently fraudulent pyramid scheme.” …

While Herbalife has settled suits brought by former distributors in the past, Bostick is the first to go to court since Herbalife became a battleground of hedge fund titans. Ackman has faced off against Dan Loeb and Carl Icahn, who owns a 15 percent stake in Herbalife. … The suit, which also seeks class-action status, claims around 88 percent of Herbalife’s 500,000 US distributors do not make any money.

The complaint is here and it’s … mostly it’s just sad. On a first reading it’s not entirely clear how you should apportion blame for the sadness; I don’t know if this says more about Herbalife or Dana Bostick: Read more »