While I believe Bill Ackman to be one of the smartest investors in the field, I don’t believe with his original assessment on Herbal Life (HLF). There was nothing in his research report that really told me that it was a Pyramid Scheme by any stretch of the imagination and being so public about it, calling for regulators to step in is not something I can relate to for a product that I believe helps more than it hurts. I don’t believe that being long the stock at current prices is the most attractive risk/reward, but I certainly think he is being overly dramatic by saying it is the worst risk/reward he has ever seen in his career, and when someone makes such outrageous statements I believe it is quite obvious that personal feelings are taking the place of judgement. Anyhow, Ackman’s letters are always thoughtful and intelligent and this is no exception.
INVESTING IN THE FINANCIAL MARKETS INVOLVES RISKS. OPTIONS ARE NOT SUITABLE FOR ALL INVESTORS.