one of the world’s most widely followed investment firms, slashed its stake in Herbalife Ltd. by 60 per cent during the third quarter, a period when Herbalife missed
and his family, sold 2.8 million shares of the nutrition and weight loss company, bringing its stake to 1.8 million shares at the end of September, a filing with the Securities and Exchange Commission on Friday showed.
began betting on its demise in December 2012 with a $1 billion short position. Ackman claims that Herbalife is a pyramid scheme in which distributors earn more money by bringing in new recruits than by the actual sale of products to consumers. The company has steadfastly denied those claims.
Icahn, Herbalife’s biggest investor and who has a handful of directors on the company’s board, held his stake steady at 17 million shares, his SEC filing showed.
This year, Herbalife has lost speed. Its stock price tumbled 32 per cent during the second quarter when the company missed analysts’ consensus earnings estimates for the first time since 2008 and cut its full-year revenue forecast. It missed earnings forecasts again in the third quarter, and its stock price has lost 51 per cent this year.
Herbalife still has supporters, including Richard Perry’s Perry Capital, Herbalife’s sixth largest investor, which raised its stake by 39 per cent, to 5.6 million shares.
Source from http://articles.economictimes.indiatimes.com/2014-11-15/#news/56115221_1_earnings-estimates-carl-icahn-tiger-consumer-management