Ackman's initial investment in Herbalife was a short position, meaning he bet that the stock price would decline. He announced his short position in December 2012, calling Herbalife a “pyramid scheme” and alleging that the company's business model was built on exploiting low-income individuals.
How much did Ackman lose on Herbalife?
Meanwhile, Ackman has lost close to $1 billion on Herbalife. In this billionaire brawl, Icahn clearly came out the winner—at least in this round.
What happened between Bill Ackman and Carl Icahn?
Ackman lost money on his $1 billion short bet against Icahn's Herbalife. “This is not a guy who keeps his word. This is a guy who takes advantage of little people,” Ackman said of Icahn at the time. The two seemingly buried the hatchet a year later when they were photographed hugging at an investors' conference.
Is Pershing Square still short Herbalife?
Hedge fund boss Bill Ackman told investors Tuesday his firm has "permanently retired" from activist short-selling. The Pershing Square boss said the firm's "quieter constructive engagements" aren't as high-profile like its battle with Herbalife.
Why did the US ban Herbalife?
The FTC said in a press release about the settlement "it's virtually impossible to make money selling Herbalife products." The lawsuit alleged that Herbalife deceived consumers into believing they could earn substantial income from the business opportunity or big money from the retail sale of the company's products.
How much money did Bill Ackman lose on Herbalife?
Ackman's investment in Herbalife is often described as one of his biggest failures, and it is estimated that his short position in the company has cost him more than $1 billion in losses.