But such methodical plans won't make up for the Herbalife losses. Ackman, desperate for some quick gains, released a memo he sent the Penney board, demanding a new CEO and suggesting that board Chairman Thomas Engibous might also consider falling on his sword, perhaps in favor of Ullman's predecessor, Allen Questrom.
The Questrom rumor sent Penney stock up, but Engibous' quick dismissal of it -- along with Starbucks (SBUX - Get Report) CEO Howard Schultz calling Ackman's tactics foul, most foul -- sent it right back down.
Ackman is now caught east of the rock and west of the hard place. He's down by almost two-thirds on the Penney investment, and the board has let him know they're in no hurry to make him whole. He's down by 100% on the Herbalife short, and his fellow hedge fund giants are in no hurry to help him there.
Ackman pretends to be unruffled. He has doubled his money on Canadian Pacific (CP - Get Report) and recently announced a $2.2 billion investment in Air Products & Chemicals (APD - Get Report). But he's also on the hook for billions in losses on Herbalife and Penney, and there seems no way out of them.Big capitalists like human sacrifices. Kicking one of their own proves to the rest of the herd that they are, in fact, better than other people, that their nature is red in tooth and claw. The bottom line here is that Bill Ackman is going to take some big, big losses. It won't change the behavior of any other hedge fund manager. But maybe you can make a buck or two off the carcass. At the time of publication the author had no position in any of the stocks mentioned. Follow @danafblankenhor This article is commentary by an independent contributor, separate from TheStreet's regular news coverage.