Another hedge fund manager is joining Bill Ackman in the ranks of Herbalife haters.
Whitney Tilson, who helps run three hedge funds and two mutual funds through T2 Partners, said in a mass email Wednesday that he’s short “a tiny smidge” of Herbalife and other so-called multilevel marketers who sell products through individual distributors.
Herbalife, the Los Angeles provider of health supplements, has seen its stock tumble 40% in four trading days after Ackman last week accused the company of operating as a pyramid scheme.
Ackman, the head of Pershing Square Capital Management, said he was shorting, or betting against, Herbalife and laid out his allegations in a detailed presentation in New York.
Tilson’s email message called Ackman’s argument “the most remarkable piece of investment analysis I have ever seen. Simply astonishing,” according to ValueWalk.
In the missive, Tilson wrote that he hopes Ackman’s campaign against the multilevel marketer “results in massive reform of this whole sector, which has preyed upon MILLIONS of vulnerable people all over the world for decades.”
In the last 52 weeks, Herbalife shares have lost about half of their value. Most of that plunge came after Ackman’s attack. In Wednesday trading, however, the stock was recovering, up as much as 8.8% to $28.35 a share.
Herbalife said last week that it will wait until next month to respond to Ackman’s allegations.
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