We first reported in December 2012 that Whitney Tilson opened a short in Herbalife Ltd. (NYSE:HLF) after hearing Bill Ackman’s presentation about the ‘controversial’ MLM company. Now Tilson has revealed that he not only still has a short in the company, but that it is one of his largest short positions. He thinks that the ‘nail in the coffin’ for Herbalife will come this Tuesday when Ackman announces new findings in his case against Herbalife.
Below is an excerpt from Whitney Tilson’s email to investors regarding his views on Herbalife Ltd. (NYSE:HLF)
Bill Ackman will be adding his latest nail to Herbalife’s coffin in a webcast at 10am on Tuesday (accessible atwww.herbalifepyramidscheme.com), where he will reveal what he’s found after a nearly two-year probe of Herbalife’s nutrition clubs (of which there are 3,000 in the NY area alone!). If history (and Herbalife’s reaction) are any guide, it should be a doozy. Whether or not you have a position (as I do – it’s one of my largest shorts), this webcast is a must-watch as Ackman’s presentations are always a tour-de-force (rivaled only by David Einhorn’s). To be clear, they’re both not always right, but: a) they’re right a lot more than they’re wrong, as their track records show; and b) if you want to see what incredible in-depth research and analysis look like, look no further.
Below is an article that sums up the latest HLF developments – here’s an excerpt:
From QTR’s opinion, the PR machine appears to be on overdrive because Herbalife appears to be backed into a corner. With regulators looking at the company and a new Ackman webcast on its way, Herbalife looks to try and do everything it can to avoid facing the facts.
I continue to contend that Herbalife is a worldwide confidence game, and that the sooner the regulators shut it down, the better.