Another hedge fund manager is joining Bill Ackman in shorting Herbalife.
Financial news outlet Value Walk reported that Whitney Tilson, the co-founder of T2 Partners, disclosed in a mass e-mail Wednesday that he is shorting the weight management company “a tiny smudge.” The hedge fund manager also called Ackman’s analysis of Herbalife the “most remarkable piece of investment analysis [he has] ever seen.”
eVestment reported last week that Ackman, the founder and CEO of New York-based Pershing Square Capital Management, called Herbalife a “pyramid scheme” in a presentation before an audience of 500, and criticized the company for inflating the suggested retail price of its products and overstating its retail sales in public filings. Herbalife’s shares have declined 40% within four trading days after Ackman’s disclosure.
Tilson launched T2 Partners with Glenn Tongue in 2004. The two announced their split to investors in June after a fund they managed lost 25% of its value.