If there is anybody on Wall Street that is looking forward to a little bit of rest and relaxation at his Hamptons home this summer, it’s Carl Ichan.
The story between East Hampton resident and legendary billionaire investor Carl Ichan and the famous hedge fund manager Bill Ackman has been as exciting as a heavyweight boxing match. The two investors got into a verbal fight on CNBC very publicly in a debate over whether or not Herbalife, a company that sells vitamins and nutrition products, is a good investment. Mr. Ackman thinks that the entire company is illegal and is essentially one massive pyramid scheme. And Mr. Ichan thinks that it isn’t a pyramid scheme and is an undervalued company.
The fight on CNBC between the two investing titans got heated, with Ichan saying flat out that Ackman is, “like a crybaby in the schoolyard.”
Bill Ackman put his money where his mouth is, with a massive short bet on Herbalife, and repeatedly asked Ichan where he was betting on the company, to which Ichan dodged the question for the most part.
But then headlines broke that Ichan was taking a large stake in Herbalife, which sent shares of the stock higher. Things have been getting really interesting.
There’s been a lot of speculation that Ichan has done this deliberately just because he doesn’t like Ackman. He was quoted in Barron’s saying, “Look, I’m in this to make money. That’s what I do. The fact that it might hurt Ackman, I’m not going to run and cry and do penance. You might like to say that it’s the strawberry on top for me, that’s up to you.”