Sat, Feb 25, 2017
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Third Point takes 8.2% stake in Herbalife despite Ackman attack

Thursday, January 10, 2013

Bailey McCann, Opalesque New York: Daniel Loeb's Third Point, an activist hedge fund with approximately $10bn under management has taken an 8.2% stake in Herbalife, a supplement company that Bill Ackman has called a pyramid scheme. In a letter to investors reprinted on the New York Times Dealbook blog, Loeb explains the trade stating that he does not believe that Herbalife is a pyramid scheme, calling Ackman's theory "preposterous."

Pershing Square Capital Management founder Bill Ackman made news when he called the company a pyramid scheme publicly and announced he was shorting the firm. Herbalife is primarily distributed through independent sellers which are incentivized to recruit other independent sellers into the company. Pyramid schemes typically rely on this type of peer-to-peer recruitment structure, but Loeb insists that Ackman's read is incorrect and his accusation that the Federal Trade Commission (FTC) missed this call when the company has been in business for decades is equally unlikely.

According to an account in Bloomberg Businessweek, other analysts seem to be siding with Loeb over Ackman. In the article, Tim Ramey, an analyst with D.A. Davidson & Co. said that he thought Ackman's 3-hour presentation on his short......................

To view our full article Click here

Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing

 



  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Opalesque Exclusive: Swiss investors take fund seeding and acceleration into their own hands[more]

    Benedicte Gravrand, Opalesque Geneva: Banque Bonhote, a 200-year old Swiss private bank, last year launched a community of investors - heads of Swiss family and advisory offices and wealth managers - with the aim of co-investing in the kind of managers they wanted to invest in, either by way of s

  2. K2 Advisors : Why We Like Activist Hedge Fund Strategies and Some Thoughts on Alpha[more]

    Matthias Knab, Opalesque: Rob Christian, Senior Managing Director, Head of Research K2 Advisors, Franklin Templeton Solutions, writes on Harvest Exchange: When d

  3. Ex-Navy SEAL backed by Mario Gabelli, Jean-Marie Eveillard and other value giants off to strong start[more]

    From Valuewalk.com: Sententia Capital Management is not your average value focused hedge fund. The fund was founded by Michael Zapata, a former Navy Seal Team 6 Officer and has attracted funding from some of the best-known names in the value space. Mario Gabelli, Jean-Marie Eveillard from First Eagl

  4. Europe - 1 trillion euro non-performing loans are clogging EU lending channels[more]

    From Centralbanking.com: As much as 1 trillion euro of non-performing loans (NPLs) are still clogging the lending channel in the European Union. An EU asset management company (AMC) could address market failures in the secondary market for NPLs as part of a suite of measures designed to tackle the b

  5. Investing - Hedge funds' novel approach: investing for longer at lower returns, U.S. hedge fund Delta Partners lifts stake in Bellamy's, Hedge funds stockpile cobalt, electric carmakers on battery alert, Facebook is racking up the likes among the world's biggest hedge funds, Einhorn affirms gold on Trump uncertainty[more]

    Hedge funds' novel approach: investing for longer at lower returns From FNLondon.com: Hedge funds are known for making short-term bets, dipping quickly in and out of markets to take advantage of swings in prices. But, under pressure to innovate, some big-name managers are looking at ways