The Herbalife Ltd. (NYSE:HLF) controversy thickens—again. There had been speculation that David Einhorn is short the stock, and it turns out that it was true, although it isn’t any longer. The big debate over Herbalife heated up when Bill Ackman gave his short thesis on the stock last month, calling the company a pyramid scheme. The drama Ackman has brought about can all be traced back to Einhorn and some simple questions he asked at a Herbalife press conference last summer.
The Wall Street Journal’s Juliet Chung reports that David Einhorn told investors that Greenlight Capital Re, Ltd. (NASDAQ:GLRE) made a successful bet against Herbalife Ltd. (NYSE:HLF) last year. That little detail has finally answered some questions about Einhorn’s view of the company ever since the questions he asked in May. Chung said Einhorn did not say how much money he earned on his short of the stock. However, she does report that David Einhorn was short on Herbalife but closed out the position last year.
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Herbalife’s stock has truly become a battleground for hedge fund managers. After Einhorn’s questions and his quiet investment decisions, Ackman trumpeted his view of the stock, and Dan Loeb countered Ackman’s bet.
David Einhorn now says Greenlight Capital Re, Ltd. (NASDAQ:GLRE) has not bet for or against Herbalife, and he would not comment on his current view of the company because of the heated debate that has involved several hedge managers.
Shares of Herbalife Ltd. (NYSE:HLF) are currently trading around $43 per share, recovering only slightly from the nosedive it took after Ackman revealed his short in December.