Ackman Shrugs Off Icahn Herbalife Investment

Feb 19 2013 | 9:30am ET

Pershing Square Capital Management is undeterred in its crusade against nutritional supplements company Herbalife by Carl Icahn's big move into the stock.

Icahn last week disclosed a 13% stake in Herbalife, two months after Pershing Square chief William Ackman attacked the company, calling it a pyramid scheme. But Icahn's buy and rumblings about seeking "strategic alternatives" for Herbalife hasn't changed Ackman's mind.

"We invest based on a careful analysis of the facts," Ackman told CNBC, whose airwaves last month hosted a 25-minute hostile exchange between he and Icahn. "After 18 months of due diligence, we have concluded that it is a certainty that Herbalife is a pyramid scheme. Our conclusions are unaffected by who is on the other side of the investment. Our goal was to shine a spotlight on Herbalife. To the extent Mr. Icahn is helping achieve this objective, we welcome his involvment.

Pershing Square has a roughly $1 billion short position in Herbalife.

During the now-legendary exchange on CNBC, Icahn asked Ackman what he would do if his stock lenders called his Herbalife shares back. "Carl's free to make a tender offer for the company," Ackman said.


In Depth

Q&A: Brevan Howard’s Charlotte Valeur Talks Strategy

Sep 18 2014 | 11:18am ET

Charlotte Valeur chairs the board of Brevan Howard Credit Catalysts, an LSE listed...

Lifestyle

Griffin Donates $1M To Rauner's Illinois Gov. Campaign

Sep 22 2014 | 9:29am ET

Hedge fund billionaire Kenneth Griffin definitely has a dog in this fight. The Citadel...

Guest Contributor

Appraisal Ratio Key To Evaluating Hedge Funds And Other New Investments

Sep 29 2014 | 3:07pm ET

As a former finance professor Peter Hecht experiences heartburn every time he hears...

 

Videos

Editor's Note

    Get A Sneak Peak Of The Alpha Pages

    Aug 25 2014 | 11:21am ET

    As many of you know, FINalternatives was recently acquired by the owners of Futures magazine, a firm called The Alpha Pages LLC. Today marks the soft-launch of a new sister site for both publications. As its name suggests, The Alpha Pages will cover all types of alternative investments, going far beyond the more well-known ones such as hedge funds and private equity. Read more…

 

Futures Magazine

September 2014 Cover

The profitable power of confluence

The trading world is inundated with strategies and techniques. Here’s one way traders can get a handle on information overload.

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.