Thursday, 27 November 2014
Last updated 14 hours ago
Mar 24 2014 | 1:27pm ET
Pershing Square Capital Management’s Herbalife short has been a roller-coaster, but after months underwater—sometimes to the tune of half a billion dollars—the hedge fund is nearly break-even on its investment.
Herbalife shares hit an eight-month low on Friday, nine days after it announced a Federal Trade Commission probe. Pershing Square’s William Ackman has argued that the company is a pyramid scheme that will be shut down by the FTC.
On Friday, Herbalife shares fell to $49.54. Ackman built his short during a period when the company’s shares traded at an average price of $48.58.
But Herbalife shares soared last year, costing Ackman hundreds of millions of dollars on paper, after Ackman rival Carl Icahn announced a huge investment in the company. Indeed, Ackman is now a good deal farther away from break-even than he was on Friday, as Herbalife shares have rallied following Icahn’s announcement that Herbalife would add three more of his representatives to its board.
Nov 4 2014 | 9:45am ET
Data management is important to every business, but for hedge funds, it is critical. FINalternatives recently asked Peter Sanchez, CEO of Northern Trust Hedge Fund Services, how fund managers can deal with the demands of managing data while at the same time remain transparent and abide by operational best practices. Read more…
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