REPORT: The SEC Has Opened An Inquiry Into Herbalife

The Wall Street Journal is reporting that the SEC has opened an inquiry in Herbalife.

Following the news, Herbalife sold down sharply, more than $3 to hit a low of $36.28 after trading at $40.58. Since then, it has bounced to above $40 a share.

Hedge fund titan Bill Ackman, the founder of Pershing Square Capital Management, revealed last month that he has a massive short position in Herbalife — a multi-level marketing company he says is a pyramid scheme. 

Today, Dan Loeb, the founder of Third Point, disclosed a massive long position in Herbalife.  Third Point has 8,900,000 shares, or an 8.24% stake in the company. 

Check out the chart:


Photo: CQG

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