Seeking Alpha – The first part of the Herbalife (HLF) action arose in December when billionaire Bill Ackman announced a 20 million share short position. Bronte Capital’s John Hempton first coined the phrase “hedge fund porn” when describing the Ackman accusations against Herbalife. Ackman of Pershing Square Capital has made a case for why he is short Herbalife and why the company is a pyramid scheme. Ackman’s short comes after David Einhorn of Greenlight Capital questioned the company’s business model in early 2012. T2 Partner’s Whitney Tilson has also gone on public record as backing Bill Ackman, stating he has a short position in Herbalife (check out Ackman’s top picks).
Part two came earlier this month when the company made an attempt to rebut Ackman’s claims. At the same time, Dan Loeb of Third Point has taken an opposite position as Ackman – taking an 8% stake in Herbalife. The New York.
