Seeking Alpha

Ackman to file SEC complaint following news of Soros Herbalife stake: NY Post

  • Pershing Square plans to file an SEC complaint regarding recent trading in shares of Herbalife (HLF), the NY Post says.
  • Apparently at issue is whether other hedge funds are attempting to manufacture a short-squeeze which, if true, would amount to illegal stock manipulation.
  • The news comes on the heels of reports indicating George Soros has taken a large position in HLF.
From other sites
Comments (22)
  • MedGuy103
    , contributor
    Comments (1380) | Send Message
     
    LOL, heat has been turned up now, hasn't it? Soros the wolf is at your door.
    1 Aug 2013, 09:33 AM Reply Like
  • Akmanscam
    , contributor
    Comments (2113) | Send Message
     
    Unlike Ackman, Soros is a world class investor and a benefactor of society. And Soros would not be involved in a Ponzi/Pyramid scheme. Ackmans goose is cooked. He is like a schoolboy who picked a fight with someone much bigger than helpself and then went whining to the principal and teachers with a bagful of lies after he gets his butt kicked.

     

    Some of us have been saying since last December that this whole things with Ackman;s charges against Herbalife was nothing but a big scam. Now the truth is coming out and Ackman is no doubt a scamster.
    1 Aug 2013, 03:23 PM Reply Like
  • TheRabble
    , contributor
    Comments (103) | Send Message
     
    Actually Ackman didn't pick a fight with them. He shorted a stock that he believed was fundamentally flawed and Icahn, who has a personal vendetta against Ackman went long. Soros, the opportunist, smells blood and is going in for the kill. Both Icahn and Soros have shown that they don't have an ounce of integrity, and they represent everything that is corrupt and wrong with Wall Street.

     

    Disclosure: I have no position in HLF
    2 Aug 2013, 10:19 AM Reply Like
  • herbs4mike
    , contributor
    Comments (2085) | Send Message
     
    @therabble.... actually its just the opposite. Nobody shorts a stock and then whines on national TV in a 300 page exposition. Ackman is the one that was obviously trying to manipulate the market. Unfortunately for Ackman, the FTC clearly sees right through his "it's the right thing to do". When you put a billion on something, you are wagering. Ackman from that moment on lost his credibility. He's a dirtbag.... and after the market gets done with him, he'll be nothing but dirt.
    2 Aug 2013, 10:47 AM Reply Like
  • TheRabble
    , contributor
    Comments (103) | Send Message
     
    While I don't pretend to know Ackman's personal reasons for going public with the short, one cannot rule out the possibility that he truly believes the company is a scam and doesn't want others to buy into it and lose money.

     

    From a cynical point of view, he went public to try to drive down the stock price. If that was truly the case, I think he would've covered his entire position after the market reacted to his initial press release.

     

    I also think he would've covered by now if he didn't truly believe in his investment thesis.
    2 Aug 2013, 12:22 PM Reply Like
  • jmj858
    , contributor
    Comments (101) | Send Message
     
    The truth is probably somewhere between your two extremes. I believe it was more of a desire to make a bunch of money with little regard for the potential damage to the many people who benefit from Herbalife's existence.
    2 Aug 2013, 02:07 PM Reply Like
  • villashaka
    , contributor
    Comments (39) | Send Message
     
    The only chance Ackman has is collusion between Soros and Icahn- I fear for small investors in this one as it is tantamount to sticking a baby on the line of an NFL scrimmage right before the snap- there will be damage.
    1 Aug 2013, 09:38 AM Reply Like
  • jmj858
    , contributor
    Comments (101) | Send Message
     
    Can you explain how taking a long position in a publicly traded stock by an equity investor as a result of discussions with other investors, can be considered illegal collusion?

     

    Let's say there's evidence that Icahn asked Soros to purchase shares in order to enhance the possibility of a short squeeze. How would the SEC view that?
    1 Aug 2013, 11:26 AM Reply Like
  • loufah
    , contributor
    Comments (272) | Send Message
     
    The SEC has at one point defined an illegal short squeeze as "a market manipulation scheme in which an investor constricts the supply of a security, through large purchases or other means, with the intent of forcing settlement from short sellers at arbitrary and inflated prices." There's plenty of wiggle room there for both sides here to make their case.
    1 Aug 2013, 01:39 PM Reply Like
  • J Collins
    , contributor
    Comments (178) | Send Message
     
    Dan Loeb was right about Ackman: he let's his ego get ahead of himself. Locking horns with two iconic investors, Icahn and Soros, at the same time, is not the smartest thing to do.
    1 Aug 2013, 10:07 AM Reply Like
  • Akmanscam
    , contributor
    Comments (2113) | Send Message
     
    Ackman is a legend in his own mind. If only his expertise matched his ego, he would be good.
    1 Aug 2013, 03:23 PM Reply Like
  • TheRabble
    , contributor
    Comments (103) | Send Message
     
    Ackman already had is full position before he knew either Icahn or Soros would get involved. Icahn picked this fight because of a personal vendetta he had with Ackman. It turned out Icahn had tried to rob Ackman but wasn't able to get away with it.
    2 Aug 2013, 10:21 AM Reply Like
  • Brandond
    , contributor
    Comments (397) | Send Message
     
    Ackman's going on CNBC weekly claiming HLF was a Ponzi scheme and was his short idea of the century all in the hopes of increasing his 2012 hedge fund results seems like market manipulation. A bear raid gone bad IMO.
    1 Aug 2013, 10:43 AM Reply Like
  • Bob of SLC
    , contributor
    Comments (3) | Send Message
     
    I think that Uncle Carl is right about Ackman being a cry baby in the schoolyard! It was Ackman that tried to manipulate the stock in the beginning wasn't it?
    1 Aug 2013, 11:05 AM Reply Like
  • Akmanscam
    , contributor
    Comments (2113) | Send Message
     
    Exactly. Looks like the pressure is finally catching up to Ackman. Now if there is any truth to Warren Buffet buying into HLF, Ackman will end up in the hospital.
    1 Aug 2013, 03:23 PM Reply Like
  • XTigerX
    , contributor
    Comments (286) | Send Message
     
    LOL! The sharks are hunting sharks.
    1 Aug 2013, 11:54 AM Reply Like
  • jeezuz30
    , contributor
    Comments (362) | Send Message
     
    More like the sharks are hunting schoolboy crybabies
    1 Aug 2013, 12:13 PM Reply Like
  • herbs4mike
    , contributor
    Comments (2085) | Send Message
     
    Ackman can't play with the big boys.... whaaaaaa
    1 Aug 2013, 02:43 PM Reply Like
  • angelshine
    , contributor
    Comments (5) | Send Message
     
    Here in Spain HERBALIFE = sect

     

    Let him who hath understanding......
    HLF$ 0
    2 Aug 2013, 07:06 AM Reply Like
  • herbs4mike
    , contributor
    Comments (2085) | Send Message
     
    Herbalife is up big in Europe. And it will continue as long as people continue to stuff their face full of food....

     

    Let him who hath eyes to see all the fat bodies get into business....

     

    HLF$100
    2 Aug 2013, 10:50 AM Reply Like
  • Joseph Poma
    , contributor
    Comments (439) | Send Message
     
    Ackman is toast. Good company or not, he has tainted his hedgefund by displaying his inability to keep his business life and personal feelings separate. Any reasonable investor would have cut some losses after the first earnings beat, no less the second earnings beat. The fact that he insists that he hasn't bought back a single share speaks volumes about his motives. Despite his past track record, it won't be long before his investors begin to realize that he is willing to risk THEIR money in his failed attempts to hurt Icahn for HIS personal benefit. First of the month...possibility for redemptions?
    2 Aug 2013, 10:43 PM Reply Like
  • angelshine
    , contributor
    Comments (5) | Send Message
     
    you aware of suffering families living with one of its members caught in this sect.
    4 Aug 2013, 07:24 PM Reply Like
DJIA (DIA) S&P 500 (SPY)
ETF Hub
ETF Screener: Search and filter by asset class, strategy, theme, performance, yield, and much more
ETF Performance: View ETF performance across key asset classes and investing themes
ETF Investing Guide: Learn how to build and manage a well-diversified, low cost ETF portfolio
ETF Selector: An explanation of how to select and use ETFs