Hedge Fund Manager On Herbalife: 'Bill Ackman Has Been Right All Along'

Speaking to Benzinga, Hedge Fund Manager and Lemelson Capital Management Founder Rev. Emmanuel Lemelson said that he thinks Pershing Square Capital Management CEO Bill Ackman is right about Herbalife Ltd. HFL.

“It’s very, very clearly a pyramid scheme,” he said.

While Lemelson thinks the company has done a good job of trying to defend itself by doing things like appearing on CNBC, he said the model of Herbalife is unsustainable.

“It’s absolutely predatory,” he said.

Lemelson said that when a company makes an attempt to cloak something, investors have to ask themselves “Why?” He thinks Ackman will be vindicated, adding that he wouldn’t be surprised if a Securities and Exchange Commission investigation shut the company down.