If you thought Carl Icahn “liked” Bill Ackman a couple weeks ago when
he told CNBC’s Scott Wapnerthat betting against him on Herbalife made him $US250 million, well now he must really, really like him.
Icahn was on Fox Business Network via the phone moments ago telling anchor Liz Claman that he has made $US500 million on his Herbalife long position. Yes, a half a billion dollars.
“I don’t like to talk about it, but yes we made $US500 million,” Icahn told Claman.
Icahn and Ackman are long-time rivals. In fact, it’s so bad that NYC waiters know to never seat these two next to each other at a restaurant. Their rivalry began with a feud in 2004 and it’s only intensified over the past year over Herbalife.
Back in December, Ackman publicly declared that he’s shorting more than 20 million shares of Herbalife — a multi-level marketing company that sells nutrition products.
Ackman believes the company is a “pyramid scheme” and that regulators, specifically the Federal Trade Commission, will be persuaded to investigate it and shut it down.
Just weeks after Ackman disclosed his position, Icahn snapped up a long position. He admitted at the CNBC Delivering Alpha conference last month that the fact doesn’t like Ackman was one reason why he decided to take a look at investing in the company in the first place.
After it was disclosed that Icahn was long the stock, Ackman and Icahn brawled on live TV on CNBC’s “Halftime Report.”
“I’m telling you he’s like a crybaby in the schoolyard, I went to a tough school in Queens, you know, and they used to beat up the little Jewish boys. He was like one of the little Jewish boys crying…” Icahn said. Icahn also said he thinks Ackman will be the victim of the “mother of all short squeezes.”
Icahn bought even more shares of Herbalife after that spat on live TV.
Since December 18, the trading session before Ackman confirmed his short, shares have risen more than 56%.
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