|New Threads Only:|
|New Threads & Replies:|
Forum List » Guru News and Commentaries|
Guru News, Stock picks and commentaries
The New York Times on Bill Ackman - Investor Activism Gone Wild
Posted by: CanadianValue (IP Logged)
Date: April 4, 2013 02:23PM
Joe Nocera and the New York Times published the following op-ed looking into the good and bad sides of hedge fund manager Bill Ackman.
William Ackman, the investor-activist who runs the $12 billion hedge fund, Pershing Square Capital, is like one of those guys you used to see in a certain kind of old-fashioned comedy. On one shoulder sits an angel, encouraging his better nature. On the other sits a devil, whispering temptation.
When he listens to the angel, Ackman does amazing things. He made a $25 million contribution to the Newark school system, an early and important match against the $100 million that Facebook’s founder, Mark Zuckerberg, put up in September 2010. Yet unlike virtually every other actor involved in the Zuckerberg grant, who have been squabbling ever since, Ackman attached virtually no strings to his donation. He wants his money to be used to help Newark’s schoolchildren — not to push someone’s reform agenda.
Then there’s his current Herbalife crusade. After making a $1 billion bet that the stock would fall, Ackman released a lengthy report alleging that the company was running an illegal pyramid scheme. I have been sadly constrained from writing columns about the Ackman-Herbalife battle because the company had the wit to hire my fiancée’s employer, David Boies, after Ackman unveiled his attack. I was, as they say, “conflicted out.”
But I will say this: Pyramid schemes are a hidden scourge, hurting millions of people seduced by their get-rich-quick promises. Until Ackman began agitating, the federal government had largely capitulated to the “multilevel marketing” industry (as it likes to be called), even exempting it from a law passed a few years ago specifically aimed at curbing pyramid schemes. Ackman has been heroic in taking on this litigious, well-financed industry. Not since Jim Chanos went after Enron has a hedge fund manager been willing to question whether a company was actually a criminal enterprise. That takes guts.
Read the full article here.
Guru Discussed: Bill Ackman: Current Portfolio, Stock Picks
Stocks Discussed: SPY, DJI, QQQ,
Disclaimers: GuruFocus.com is not operated by a broker, a dealer, or a registered investment adviser. Under no circumstances does any information posted on GuruFocus.com represent a recommendation to buy or sell a security. The information on this site, and in its related newsletters, is not intended to be, nor does it constitute, investment advice or recommendations. The gurus may buy and sell securities before and after any particular article and report and information herein is published, with respect to the securities discussed in any article and report posted herein. In no event shall GuruFocus.com be liable to any member, guest or third party for any damages of any kind arising out of the use of any content or other material published or available on GuruFocus.com, or relating to the use of, or inability to use, GuruFocus.com or any content, including, without limitation, any investment losses, lost profits, lost opportunity, special, incidental, indirect, consequential or punitive damages. Past performance is a poor indicator of future performance. The information on this site, and in its related newsletters, is not intended to be, nor does it constitute, investment advice or recommendations. The information on this site is in no way guaranteed for completeness, accuracy or in any other way. The gurus listed in this website are not affiliated with GuruFocus.com, LLC. Stock quotes provided by InterActive Data. Fundamental company data provided by Morningstar, updated daily.