Herbalife Gains as Ackman Presentation Fails to Convince

Herbalife Ltd.’s shares logged their biggest-ever gain, rising more than 25 percent after hedge-fund manager Bill Ackman failed to convince investors that the seller of weight-loss shakes is committing fraud.

Speaking during what he’s billed as the most important presentation of his career, Ackman focused on the company’s nutrition clubs -- a central piece of the Herbalife direct-selling model. Ackman said he estimates that the distributor-owned clubs lose $12,000 each per year, on average.