Herbalife shares extended their post-Christmas rally to 77 percent yesterday — good news for most everyone not named Bill Ackman.
Ackman, the hedge fund mogul who founded Pershing Square, famously trashed the distributor of nutritional supplements, calling it a pyramid scheme that should be shut down by regulators.
The Ack-attack, coming on Dec. 19 and 20, sent Herbalife shares tumbling 39 percent, to a Dec. 24 close at $26.06.
But since Christmas, shares of the Los Angeles-based company have gained 77 percent — including a rise of 4.8 percent yesterday, to $46.19.
The rise is also disappointing for the seven institutions that thus far have reported they already sold all of their Herbalife stock as of Dec. 31 — none of which will be likely to send Ackman any Valentines.
“I know two large investors who puked because they didn’t want to show it on their 13fs,” said a hedge fund manager referring to the groups selling all their Herbalife stock, according to regulatory filings.
Ackman’s questions about the company’s legitimacy led many to bolt, sources said.
The quick move to sell has robbed those investors of profits from the rally.