Kyle Bass on Herbalife: I Would Never Bet Against Dan Loeb
Hedge fund manager Kyle Bass, known for his bet against U.S. subprime and his prescient prediction on the European debt market, told CNBC's Gary Kaminsky on Friday that he would "never bet against Dan Loeb."
Loeb, the fund manager of Third Point, has an 8.2 percent stake in multi-level marketing company Herbalife (NYSE: HLF). Shares of Herbalife plunged in December after Bill Ackman announced that he had sold short 20 million shares of the company.
Jumping on the opportunity, Loeb initiated a position in Herbalife. In a letter to shareholders, Loeb called Ackman's argument (that Herbalife would eventually be driven out of business by regulators) absurd.
Asked by Kaminsky, Bass noted that he had not studied Herbalife in particular, but knew Loeb well. Bass called Loeb one of the smartest investors he knew, and proclaimed that he would never bet against him.
Shares of Herbalife traded near $34.95 on Friday, down nearly 4 percent.
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