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Bill Ackman Surprised At "Short Squeeze" Attempt by Hedge Funds on His Herbalife

April 07, 2013 | About:
Canadian Value

Canadian Value

Activist investor Bill Ackman tells Reuters Impact Players host Robert Wolf that his public bet against Herbalife was bound to stir controversy, but Ackman was surprised so many in the hedge fund world tried to put a "short squeeze" against him.

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Canadian Value

Rating: 2.0/5 (5 votes)


Cornelius Chan
Cornelius Chan - 1 year ago
When you are in the hedge fund industry you are playing with the big boys. Make a stupid presentation against a rock-solid financials company based on some speculation and what do you expect?

HLF is a far better than average company. There is nothing in the financials to find fault with. What does the 10-year record show? Revenues steadily growing since '03, didn't skip a beat in '08/'09. Fairly steadily rising net earnings - a 4-star Gurufocus stock. Good book value growth. Unbelievable return on equity. Balance sheet? Total current assets > total current liabilities. Current portion of total debt laughably miniscule. Total assets almost 2X total liabilities. Cash flow? Every year since '04 growing?

As far as claiming HLF is an unethical business model... this question has already been answered... in the good ole' U.S.A. Network marketing companies with multilevel compensation to the sales force are a legitimate industry with many billions in revenues with decades of operating history.

The arrogance of Bill Ackman is pathetic. I hope he loses his shirt on his short position. Or go to jail if he can't pay. LOL!!
Vgm - 1 year ago
"The arrogance of Bill Ackman is pathetic."

Yes! And I'd add naivety bordering on stupidity. Dan Loeb's elegant two-page rebuttal of Ackman's 300+ slide pack on HLF said it all for me. So many believed that because Ackman's presentation was so extraordinarily long it must therefore be correct.
Traderatwork - 1 year ago
HLF is below 36 now, jokes is on you and Icahn.

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