Anyone who has been following the 'Herbalife' Wall Street saga since December 2012, will be familiar with the names of its two leading characters: Bill Ackman and Carl Icahn. However, a third name has now reappeared - that of Dan Loeb.
|Bill Ackman (estimated net worth: $1.2 billion).
Bill Ackman is the founder and boss of hedge fund firm, Pershing Square Capital. In December 2012, he revealed a massive short position in 'Herbalife,' whilst explaining in great detail that the company has fronted an unregulated pyramid scheme which has damaged countless vulnerable persons (particularly, in America's Hispanic community). As a result, the articificially-inflated market value of effectively-valueless 'Herbalife' shares immediately began to deflate. Without any attempt to refute Ackman's evidence-based analysis, Wall Street rivals, Dan Loeb and Carl Icahn, then stepped in and challenged Ackman, with Loeb revealing a long position in 'Herbalife,' and Icahn questioning Ackman's investment skills on a CNBC programme. As a result of Loeb and Icahn's attempts to ridicule Bill Ackman's openly-declared motivation to be a desire to protect the public, combined with the failure of US regulators to take immediate action in defence of the public, the market value of effectively-valueless 'Herbalife' shares began to re-inflate.
Net worth: $1.5 billion. Dan Loeb is the founder and boss of hedge fund firm 'Third Point.' He made headlines in early 2013, when he revealed that he had acquired a significant stake in 'Herbalife' immediately after Bill Ackman had explained that the company has been the effectively-valueless front for a pyramid scheme, and its articificially-inflated market value had begun to deflate. It was later disclosed that Loeb had, in fact, dumped his effectively-valueless 'Herbalife' shares for a tidy profit almost immediately. At no stage has Dan Loeb displayed the slightest concern for the victims of the version of the 'MLM income opportunity' lie entitled 'Herbalife.' Indeed, Loeb has openly declared his sole motivation to be a desire to make profits.
'New HLF product: The Herbalife Enema, administered by Uncle Carl.'
Thus, Dan Loeb is sniggering at Bill Ackman whom he now believes to be shitting himself, because, to date, he and Carl Icahn have got away with helping the highly-profitable 'Herbalife' racket to survive.
In reality, Dan Loeb is no fool. Like Carl Icahn, he must be secretly aware that he has made piles of cash unlawfully by openly investing in and, thus, effectively manipulating the market value of the effectively-valueless, counterfeit corporate front for an ongoing, major, organized crime group.
David Brear (copyright 2013)