Tuesday, 21 October 2014
Last updated 1 hour ago
Apr 2 2013 | 10:30am ET
Has all the sound and fury surrounding Herbalife signified nothing, save profits all around?
To listen to the primary hedge fund antagonists in the matter, Pershing Square Capital Management founder William Ackman and Carl Icahn, the battle over the nutritional supplements company is a zero-sum game: Ackman says Herbalife is a pyramid scheme whose stock will eventually prove worthless. Icahn says it’s a great opportunity, presenting another opportunity, that to destroy Ackman.
But, owing to their different points of entry into the Herbalife fray, both men—and Third Point's Daniel Loeb, who bet with Icahn on the long side without any of the animus that animates the elder investor—are sitting on gains.
Ackman, who announced his $1 billion short in December, sending Herbalife shares into a tailspin, remains up more than $200 million on paper. Loeb, who sent the stock to something of a rebound when he announced his disagreement with Ackman, made between $50 million and $200 million, The Wall Street Journal reports. Loeb has since sold most of his Herbalife shares.
Icahn, who says he is working with Herbalife on its business model, has turned an approximately $25 million unrealized profit, according to the Journal.
Sep 22 2014 | 4:15pm ET
"I tell people that everybody likes good news and so if you have good performance that’s wonderful,” explains Mike McKitish of Peddie School's endowment, “but it’s the people that want to talk about the bad news or where they drifted and how they came back and how they stayed to their discipline…” that he wants to hear from. Read more…
Sep 30 2014 | 9:29am ET
The crisp Autumnal days of October are upon us, and so are a few of the hedge fund industry’s favorite charitable events. If you have never been to Rocktoberfest, well, you are missing out. And for a quieter evening of sipping and socializing, stop by HFC’s Wine Soiree. Read more…
Most traders agree that proper risk management is the key to successful trading. However, many traders depend on the deeply flawed measure of standard deviation as a benchmark of risk. Here we put it ...