Ackman'a Herbalife Short Brings $650M Paper Loss

[JamesL]

Soros investment only makes things worse.

But the bottom line for Ackman is that the Soros investment in Herbalife has further dented Pershing Square’s returns in 2013. Herbalife’s stock is now up by 100% in 2013 and continued to rise in Thursday morning trading. That means that the Pershing Square hedge fund’s Herbalife position has suffered estimated paper losses of some $650 million in 2013, given that Ackman has said he shorted 20 million shares and told CNBC on Wednesday that he has not covered a share. That means Ackman needs to find $650 million of profits somewhere else just to break even, making keeping up with the Standard & Poor’s 19% return so far in 2013 very tough.

http://www.forbes.com/sites/nathanv...wittersf&utm_source=twitter&utm_medium=social

 

[igotcash]

life is short. bet big or go home. and hopefully you are betting with other people's money (OPM) and charging them a 2% wrap fee.

 

[Pekelo]

The saddest part is that at one point he was deeply in profits, but greed and being right took over...

But couldn't have happened to a nicer man.

 

[doublet83]

His temporary paper profits were because he made a convincing presentation that the company was an illegal pyramid scheme.

He would not be able to cover his short so quickly after publicly 'bashing' the company as he would be accused and found guilty of market manipulation.

 

[Cdntrader]

Quote from igotcash:

life is short. bet big or go home. and hopefully you are betting with other people's money (OPM) and charging them a 2% wrap fee.

There ya go.

 

[actionzip54]

I don't see how he isn't being charged by the SEC

 

[Pekelo]

Quote from doublet83:

His temporary paper profits were because he made a convincing presentation that the company was an illegal pyramid scheme.

He would not be able to cover his short so quickly after publicly 'bashing' the company as he would be accused and found guilty of market manipulation.

The stock had been down for an extended period of time, he had plenty of time to cover. If nothing else, he could have sold puts or bought calls.... Staying short without hedging, well -650 mill, here we go...

 

[CET]

His presentation was in December, which caused the big flush. He spent the rest of the month shopping at J C Penney.

 

[doublet83]

Quote from Pekelo:

The stock had been down for an extended period of time, he had plenty of time to cover. If nothing else, he could have sold puts or bought calls.... Staying short without hedging, well -650 mill, here we go...

Not really

 

[Pekelo]

Quote from doublet83:

Not really

yes, really, you are allowed to hedge.

(at least he could have locked in profits)