Herbalife is rallying because the market can't inflict enough pain on Bill Ackman

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Herbalife is up 6%.

The supplement company that hedge fund manager Bill Ackman is very publicly betting against is rallying on Thursday as Valeant Pharmaceuticals, Ackman’s most prominent long position — or stock he is betting will go higher — is getting crushed.

Why is Herbalife going higher? Because someone out there is executing a full-on Ackmanfreude trade where they simply take the other side of his bets.

Earlier this week Herbalife reported earnings that beat expectations but were more or less unremarkable.

Meanwhile, Valeant shares fell as much as 18% on Thursday after a report in The Wall Street Journal revealed that Ackman was unhappy with Valeant’s conference call last week to address allegations regarding a specialty pharmacy company named Philidor.

Among other things, Ackman sent a harried email to Valeant executives after the call while also reportedly telling his team own team at Pershing Square they either needed to double down on their Valeant bet or sell all of it. (They doubled down.)

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