Carl Icahn vs. Bill Ackman

[moneymaker]

Can’t believe what I just witnessed on CNBC. Arguing on what both sides believe to be a pyramid scheme (Herbal Life). Wow billionares swearing on live TV, calling each other liars. But Bill is right that Carl will not buy Herbal Life, not when he believes it is a ponsi scheme. Evidently Bill is shorting while at the same time touting it back in December.

[enron_by_the_sea]

It has been named the Battle of Stalingrad for the hedge funds.

[earlyretirement]

Man for anyone in the finance or investment realm…this HLF battle is really one for the ages. It will be interesting to see who wins. One side is going to lose a LOT of money.

For those of you that missed the video it’s here:

http://www.businessinsider.com/video-bill-ackman-and-carl-icahn-fight-on-cnbc-2013-1

One thing I’ll say is Ackman is a very smart guy. I made lots of money on a short position on MBIA during the financial crises thanks to Mr. Ackman.

Many people tried bullying him but ultimately on that position he made a bloody fortune. Read the book Confidence Game. Very interesting story.

I haven’t shorted HLF but man I’m interested who ultimately wins that battle.

[livinincali]

Too many people have already shorted HLF. 38% of the float is out short. That’s worse than left for dead companies like RIMM or NFLX. I certainly wouldn’t get on the short side of HLF. It’s bound to be squeezed over and over again until you actually get a breaking news story that it is a ponzi scheme.

[earlyretirement]

Yep. I’m not going to short HLF. It’s risky as there are a lot of guys that have much more money than Ackman. Sometimes even when you’re right you have to have enough money (and time) to back it up.

Ultimately Ackman could be right but it could take many years like MBIA did. Granted in that case his patience paid off. He made something like over a billion bucks on that one.

Short squeezes are fun to watch as long as you’re not shorting those stocks.

I have no skin in the HLF game and probably never will but really exciting to watch how this turns out.

[Author]

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