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Ackman Calls it Quits on Herbalife Bet
Ackman says he has exited Pershing Square's long-running bet against Herbalife, the company he called a pyramid scheme.
Activist investor Bill Ackman has let go of its years-long bet against Herbalife, the multi-level nutrition products marketer he said was a pyramid scheme.
CNBCreportedWednesday that Ackman had unwound Pershing Square's Herbalife position. Scott Wapner, host of CNBC's Halftime Report segment,tweetedthat he had spoken with Ackman, who said he was "all but out" of its Herbalife stock options.
A person familiar with the matter said Pershing Square had been unwinding the investment for a period of months now.
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Ackman has been betting against Herbalife since late 2012, when he announced a $1 billion short of the company's stock.
Despite regulatory action by the Federal Trade Commission, which forced Herbalife to alter its business practices, the stock has continued to trade above its 2012 low of $27 a share, and has stayed above $80 for most of the last month.
Last fall, Ackmanannouncedthat he had converted the position into put options in order to limit his downside.
As of 1:30 p.m. Wednesday, the stock was up nearly 10 percent for the day.