![]() ![]() The moral of the story: It’s sometimes best to let the lobbyists look like idiots alone. He and others like him must have thought, “Why would Herbalife be so concerned about a bill that requires them to do something they were already supposed to be doing i.e. People like him look for subtle clues that give him an edge. They brought someone from…Herbalife.Įinhorn is no idiot. But… as I’ve written about in the past, they did not show up alone. As expected, the DSA showed up to kill it. To refresh the reader’s memory, I tried to pass an Anti-Pyramid bill in 2009 in Tennessee that simply required distributors to have SOME retail sales before they were eligible for commissions. It’s odd, though, that around April of 2012, I fielded a lot of random calls from people about Herbalife’s response to my anti-pyramid bill in Tennessee. He, like Ackman, was pitched the short by an analyst (Christine Richards), who provided a lot of research about Herbalife. I’m sure it was a number of things that got him interested. So what got Einhorn interested in Herbalife? In May of 2012, Ackman started shorting Herbalife. In Wapner’s book When the Wolves Bite, he makes it clear that it was Einhorn’s call that prompted Ackman to transition from research to action. The market went haywire, assuming (correctly, as it turns out) that he was short $HLF. ![]() In early May of 2012, Einhorn got on an earnings call and asked a few basic questions. As I’m reading the history, and reviewing the timing of events, I cannot help but think that Herbalife, holding hands with the DSA, injured itself.ĭavid Einhorn is a hedge fund manager at Greenlight Capital. I was fortunate to have a front-row seat to some of the early events due to my friendship with one of the hedge fund managers Bob Chapman. In the book, author Scott Wapner covers a lot of history that includes the build-up that led to Ackman’s short investment. The book is titled, “When the Wolves Bite: Two Billionaires, One Company and an Epic Wall Street Battle” ( link here). "We expect that each of these companies will grow their revenues and profitability over the long term, regardless of recent events and the various other challenges that the world will face over the short, intermediate, and long-term," Ackman said in the letter.I’m reading a fantastic book that recaps the epic battle between Herbalife and Bill Ackman. He also owns sizable stakes in Lowe's, Howard Hughes and Hilton. More recently, he built a new stake in Canadian Pacific Railway, a company that the activist investor helped overhaul years ago.Īckman said about 30% of our equity portfolio is invested in music and video streaming - UMG and Netflix, while 26% in restaurants and restaurant franchising - Chipotle, Restaurant Brands and Domino's. In January, Ackman bought over 3 million shares of Netflix to become a top 20 shareholder. So, if it is helpful to call this quieter approach Pershing Square 3.0, let it hereby be so anointed." We intend to keep it that way as it makes our job easier and more fun, and our quality of life better. ![]() "The result is that all of our interactions with companies over the last five years have been cordial, constructive, and productive. "We have had the opportunity to get to know many boards and management teams, and we have built a reputation as a constructive, long-term, and helpful owner," Ackman said. Personal Loans for 670 Credit Score or Lower Personal Loans for 580 Credit Score or Lower Best Debt Consolidation Loans for Bad Credit ![]()
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