Herbalife Shares Have Recovered All Of The Losses Of Monday's Plunge

Shares of Herbalife are rallying today after they tanked more than 10% going into Monday’s close on a rumour that Carl Icahn might be unwinding his position.

Fox Business Network’s Charlie Gasparino Tweeted that Icahn has not sold a single share or taken an options position.

The stock was last trading up about 7.9% on Tuesday around $US43.39 per share.

Herbalife, a multi-level marketer that sells nutrition products, has been at the center of a hedge fund war for nearly 20 months.

Bill Ackman, who runs Pershing Square, has been very loudly and publicly short the company. He made his $US1 billion short position public back in December 2012. It’s his belief that Herbalife operates as a “pyramid scheme” that targets poor people. His investment thesis is predicated on regulators, specifically the Federal Trade Commission, shutting the company down. Back in March, the FTC opened a probe into the company.

Within weeks of Ackman’s presentation, Icahn, a long-time rival, snapped up a large long position. The two hedge fund titans later engaged in nasty, on-air brawl on CNBC. Icahn had also admitted that the fact that he doesn’t like Ackman was one reason why he decided to take a look at investing in the company in the first place. This summer, Icahn and Ackman reconciled with a hug at a conference.

Icahn currently owns 17,000,000 shares of Herbalife, according to regulatory filing data compiled by Bloomberg.

Check out the chart for the last five trading sessions:

NOW WATCH: Money & Markets videos

Want to read a more in-depth view on the trends influencing Australian business and the global economy? BI / Research is designed to help executives and industry leaders understand the major challenges and opportunities for industry, technology, strategy and the economy in the future. Sign up for free at research.businessinsider.com.au.