Herbalife Plunges As Ackman Doubles Down On Einhorn Bear Thesis
Back in May, Herbalife stock got monkeyhammered when one of the best performing hedge fund managers of the past few years, David Einhorn expressed a bearish thesis in the company. Today, the stock just got the double tap following no new information, but merely the second part of the Einhorn-Ackman-Loeb activist triangle (who most of the time operate as an informal cartel), as it plunged by over 10% when William Ackman, smarting from the hundreds of millions lost in JCPenney just piggybacked on Einhorn's thesis, as reported by CNBC, said he is short Herbalife, calling it a pyramid scheme, and saying he has done fundamental research for a year (it takes a year to read Einhorn's presentation?). Essentially, nothing new here.
All we await now is that 13F chaser Whitney Tilson to finally jump on board what is becoming the world's biggest hedge fund short, and get a catalyst, any catalyst that scrambles the shorts into covering, and sends the stock in the triple digit range.
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