This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Herbalife Wants Ackman's Clients To Dump Pershing Square

Herbalife Ltd HLF works behind the scenes to sink Bill Ackman's Pershing Square fund.

Herbalife Ltd. (HLF)" class="ticker" target="_blank"> (HLF) has apparently been taking cues from Bill Ackman’s attack. However, the company is being a lot sneakier about what it’s up to. Katherine Burton, Duane D. Stanford and Pierre Paulden of Bloomberg Businessweek report that Herbalife has been approaching investors who have money in Ackman’s Pershing Square fund and urging them to pull their money out. Instead of announcing the strategy publicly like Ackman did, the company is working behind the scenes.

herbalife

Herbalife turns the tables on Bill Ackman

They cite sources familiar with Herbalife’s strategy. The company is reportedly arguing that Ackman’s best against it is irresponsible and risky. The activist investor has lost up to $500 million in his short of Herbalife Ltd. (HLF)" class="ticker" target="_blank"> (HLF). Herbalife also claims that Ackman made his short bet a personal issue and that by placing nearly 10% of Pershing Square’s assets into his short position, he was putting too much risk into the fund.

Moelis & Co., which is an investment bank which works with Herbalife, reportedly set up a meeting with Cliffwater LLC, a firm which provides advice to clients about their investments into hedge funds. Herbalife executives were said to have been invited to that meeting as well. According to the report, Moelis also contacted New Jersey’s pension fund, which currently has $207 million invested in Ackman’s Pershing Square fund. At this point, however, the $76.7 billion pension fund has apparently not met with Herbalife.

Ackman complains to Moelis

Herbalife was said to have hired Moelis last year to help it “strategically position” itself. The company reportedly decided to start contacting Pershing Square investors over the last couple of months. Bill Ackman apparently called Moelis to complain after he learned of Herbalife’s decision to start contacting his clients.

1 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,912.11 -70.48 -0.42%
S&P 500 1,969.95 -8.96 -0.45%
NASDAQ 4,442.6980 -2.2110 -0.05%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs