Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

Ackman Says Pershing Will Extend Herbalife Short Bet If Needed

Aug. 13 (Bloomberg) -- Bill Ackman, the hedge-fund manager who has mounted a two-year campaign to prove Herbalife Ltd. is a pyramid scheme, will extend his bet against the company should he need to.

The cost of maintaining a position in options that profit from a drop in Herbalife shares has declined “substantially” since Herbalife canceled its dividend, Ackman said in his quarterly letter to investors dated today. Most of the over-the-counter contracts Pershing currently holds will expire next year.

“We will extend their terms by paying additional premiums if it is necessary to do so,” Ackman wrote in the letter, which was obtained by Bloomberg News.

Ackman has bet $1 billion against Herbalife and mounted a campaign that was capped by a more than three-hour presentation on July 22 purporting to show that the company is an Enron-style fraud. Investors brushed off his arguments, sending the stock up 25 percent in one day.

Today’s letter also acknowledged that the lengthy presentation and the hype he generated ahead of it were missteps. Herbalife shares, which have since tumbled after the company’s earnings missed projections later in July, are down almost 20 percent in the past year.

To contact the reporter on this story: Beth Jinks in New York at bjinks1@bloomberg.net

To contact the editors responsible for this story: Mohammed Hadi at mhadi1@bloomberg.net Nick Turner

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.