2 Forgotten Activists In Herbalife: David Einhorn And Dan Loeb

Bill Ackman’s 2016 just keeps getting worse. With shares of Ackman’s most notorious long Valeant Pharmaceuticals Intl Inc VRX already down 77.4 percent this year, Ackman short Herbalife Ltd. HLF is spiking 18.1 percent on Friday following a $200 million settlement with the FTC. Shares are now up more than 30 percent on the year.

The media loves to cover the drama between long-term high-profile Herbalife bull Carl Icahn and Ackman, who made a $1 billion short bet on Herbalife back in 2012 starting at around $47/share. As of Friday morning, the stock was trading at around $70/share.

Both Ackman and Icahn’s positions in Herbalife are presumably still open, but they aren’t the only two big-name activist investors to be involved with Herbalife over the years.

Back in 2013, billionaire Dan Loeb bought Herbalife at around $28/share before selling the stock just weeks later at $44. Loeb said his quick Herbalife trade in opposition to Ackman was “not personal.”

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While Ackman’s long-term bet against Herbalife has gone sour, David Einhorn was able to take timely profits on his short position back in 2012. In his annual meeting with investors, Einhorn was unclear about the details of his trade but assured Greenlight investors that it was a profitable one.

It remains to be seen whether or not the FTC settlement is the end of Herbalife’s drama. In the meantime, Bill Ackman is hoping Herbalife and Valeant don’t spell the end of Pershing Square Capital.

Disclosure: the author holds no position in the stocks mentioned.