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Is Ackman Caught In A Herbalife Trap?

|Includes: BHC, Herbalife Ltd. (HLF), PSHZF

Bill Ackman is single-minded following his Herbalife short thesis, but he may missed the right time to declare at least a temporary defeat against Icahn and other long investors.

Actually, I agree that Herablife looks much like a fraud to me too. But in the end what counts are investment returns. And here he seems to be on the loosing side as Herbalife reached new heights of 72 USD per share. And more could come:

Herablife announced it may buyback own shares for 1,5bn (current market value of 6.6 bn.) And Icahn secured himself the right to increase his share vom currently about 25% to a maximum of50%. Other investors like One Street and Deccan Value investors seem to join sides with Icahn.

This looks very much like short queeze to me which could get very painful for Ackman and his Pershing square investors.

Ironically, he was too long bullish on Valeant (-70% over 5yrs) and too long short on Herbalife (+60% over 5 yrs). Which is the worst which can happen to any investor in combination.