Herbalife (HLF) Plunges After Bill Ackman Gets Short; Calls a 'Pyramid Scheme'
Earlier, StreetInsider.com noted that Ackman would present a new short idea at tomorrow's Ira Sohn conference. Now it is known which one.
Ackman has been doing fundamental research on Herbalife for a year and considers the company to be a "pyramid scheme," CNBC noted. He said it is 'one of the single best short thesis he's ever seen,' according to the reporting.
The hedge fund manager is expected to reveal more at tomorrow's conference.
Shares of HLF are down 10.7 percent following the news. Peer Nu Skin Enterprises (NYSE: NUS) fell 5.5% in sympathy.