Benzinga has challenged hedge fund magnates Dan Loeb and Bill Ackman to publicly debate the investment case for Herbalife (NYSE: HLF) on a webcast hosted by BenzingaPro.
Bill Ackman came public with his short position on Herbalife in late December, causing shares of the multi-level marketer to tank, dropping as low as $24.24. Ackman called the company a “pyramid scheme” and alleged that it was violating FTC rules governing MLM companies.
Since then, however, several other prominent investors have come forward to take the other side of the trade. Most notably Dan Loeb.
Loeb’s Third Point Capital took an 8.2 percent stake in Herbalife last week. In a letter to his investors, Loeb characterized Ackman’s bearish thesis as preposterous. Yet, he didn’t mention Ackman by name, instead calling him “the short seller.”
Now trading above $46 per share, Herbalife’s stock is higher than when Ackman first came public with his bearish thesis. Yet, the situation is far from over, as Ackman has promised to counter Herbalife’s latest defense. Meanwhile, the SEC has opened an inquiry into the company.
For the benefit of the investing community, Benzinga would like to showcase how two highly regarded investors can arrive at such different conclusions on the same stock.
If Loeb and Ackman agree to the debate, Benzinga will donate $25,000 to the Boys & Girls Harbor. (c) 2013 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Tags: Bill Ackman, Dan Loeb
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