Amidst Herbalife Accusations, Soros Quits Pershing Square

Aug 9 2013 | 10:53am ET

When Pershing Square Capital Management's William Ackman asked the Securities and Exchange Commission to open an investigation into Soros Fund Management, he wasn't merely making trouble for a rival investor. He was making trouble for one of his own clients.

Make that one of his soon-to-be-former clients: Soros is redeeming its entire investment with Pershing Square.

Soros has just $250 million left with Pershing Square, money that is set to be fully returned by early next year.

Soros, which become a family office when founder George Soros returned all outside capital several years ago, made the redemption requests earlier this year—before it took sides in a bitter battle between Pershing Square and Carl Icahn over Herbalife. Soros has taken a large long position in the nutritional supplements company, which Ackman has called a pyramid scheme and made a $1 billion short bet against.

In the wake of Soros' investment, Ackman asked the SEC to look into whether Soros and other investors with whom it had held "idea meetings" on Herbalife constituted a "common group," thereby violating SEC filing requirements. Ackman is said to believe that Soros and others are trying to manufacture a short-squeeze to force him to abandon his short bet.


In Depth

Debunking Conventional Investment Wisdom

Feb 8 2017 | 3:22pm ET

Due diligence in the hedge fund world has long involved some combination of the...

Lifestyle

'Tis the Season: Wall Street Holiday Parties Back In Fashion

Dec 22 2016 | 9:23pm ET

Spending on Wall Street holiday parties has largely returned to pre-2008 levels...

Guest Contributor

The Future of Private Equity: New Opportunities, New Challenges

Feb 3 2017 | 6:41pm ET

The private equity industry’s astonishing rebound since the financial crisis has...

 

From the current issue of