In hindsight, says Bill Ackman, his latest Herbalife presentation was overhyped, and investors may have missed the point, Bloomberg reported.
“My bad,” he told the publication in an interview.
After teasing his Herbalife presentation as “the most important presentation” of his career, Ackman flopped, with shares of Herbalife up 25% by the end of the day. Ackman was also forced to retract one of his statements shortly afterwards.
According to Bloomberg, the private researcher helping Ackman look into Herbalife also said many details in Ackman’s investigation were ignored.
“It was a PR failure,” Ackman told Bloomberg. “I think we raised expectations. People were looking for the dead body and the smoking gun and instead what they got was a three-hour detailed regulatory presentation.”
Ackman is famously short Herbalife, believing that the company is a pyramid scheme and its shares will eventually go to zero. His hedge fund, Pershing Square Capital Management, has a $US1 billion short position on the company.
His most recent presentation was an attempt to uncover the questionable business practices of the company, through an investigation of its nutrition clubs. Ackman said Pershing spent $US50 million on his research.
Herbalife CEO John DeSimone rebutted his claims on Bloomberg TV the day of his presentation. The company has said Ackman’s accusations are “completely false and fabricated.”
“I’m my own worst enemy,” Ackman told Bloomberg.
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