Short-oriented Bronte Capital's John Hempton sees Herbalife (HLF -0.1%) shares going still higher, possibly to $105/share, although he has reduced his stake. Of Ackman's missteps he says, "Before Ackman, we would never have been in Herbalife ... Ackman broke every rule of risk management. He came out there and said, 'We had this unbelievably strong short case against something, so we are 10% of our fund shorted and 25% of its float shorted and we did this in the most public way that you could imagine.'" Hempton made his bet against Ackman at $25-$26/share.
On the short side, Hempton is particularly bearish on coal, and especially so on U.S. producers. He tethers his thesis on coal vs. natural gas price economics, which he believes outweigh any opportunity of demand increases from China as it transitions to cleaner seaborne coal.
Coal ETF: KOL