“A huge hedge fund war is breaking out between two of the richest and most famous hedge fund managers in the world.
The battlefield? Herbalife, the distributor of its own nutritional products.
Hedge funder Bill Ackman is famously short Herbalife, likening it to an illegal pyramid scheme, which he hopes/expects the government will go after.
Today it’s been revealed that hedge funder Dan Loeb has now gone LONG Herbalife, taking a massive 8.2% stake.
The stock has spiked on the news.
Ackman first announced his short with a dizzying multi-hour presentaiton that he delivered near the end of December.
The premise of the short was that the stock was a pyramid scheme, and that the government could be induced to inveestigate the company, causing it to go to zero…”
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