Skip to main content

Market Overview

Bill Ackman Says Herbalife Is 'Trying To Get Us To Go Away'

Bill Ackman Says Herbalife Is 'Trying To Get Us To Go Away'

Billionaire investor and hedge fund manager Bill Ackman was a guest on CNBC's "New @ Noon" segment on Thursday to discuss various issues, including his short thesis on Herbalife Ltd. (NYSE: HLF).

Ahead of his appearance, a Herbalife spokesperson sent CNBC a statement. The statement said that it has now been three years since Ackman detailed his short thesis against the company and "has lost hundreds of millions of dollars," and the cost of carrying his short position is over $100 million. The statement further questioned when Ackman will admit he was "just misinformed."

Ackman was quick to point out that the cost of carrying a short position is roughly 2 percent a year, so a $1 billion short position against Herbalife will cost around $20 million a year — not $100 million.

"It's interesting that Herbalife is trying to get us to go away and steer the focus away from the facts," Ackman said during the phone interview.

Related Link: Social Media: The Multi-Level Marketing Breeding Ground

He continued and said that Herbalife's $200 million settlement with the FTC would prove to be the largest consumer protection fine ever collected by the agency. He suggested that this shows the company "clearly" engaged in wrongdoing and will ultimately end up being sued by the government for operating as a pyramid scheme.

Ackman added that he is a "patient investor" in his short case against Herbalife, and the risk to reward profile is the most attractive it has ever been.

"If it wasn't an attractive investment, we would have covered a long time ago," he concluded.

Did you like this article? Could it have been improved? Please email to let us know!


Related Articles (HLF)

View Comments and Join the Discussion!

Posted-In: Bill Ackman Bill Ackman Herbalife Short CNBC CNBCShort Sellers Short Ideas Media Trading Ideas Best of Benzinga