Ackman’s Pershing Near Break Even on Losing Herbalife Bet

Bill Ackman is close to breaking even on his wager against Herbalife Ltd., a trade by his Pershing Square Capital Management LP that he last month called its biggest loser, after the stock plunged following disclosure of a U.S. Federal Trade Commission investigation.

Herbalife fell to a eight-month low of $49.54 on March 21, approaching the level when Ackman first put on his trade. The hedge-fund manager started what would become a $1 billion bet against the stock in May 2012, he has said, before disclosing it on Dec. 19 of that year. During that period the stock was trading at an average price of $48.58. Ackman has since restructured his Herbalife wager using long-term put options, making an exact determination of his break-even point difficult.