Dan Loeb Buys Herbalife, Morgan Stanley & Tesoro: Third Point Q4 Letter
From market folly January 9, 2013 - 2:43pm
Let the battle begin. Dan Loeb's hedge fund Third Point has started a long position in Herbalife (HLF), he revealed in his Q4 letter to investors. He also filed a 13G with the SEC disclosing that Third Point owns 8.24% of the company as of January 3rd.
Loeb Long Herbalife
Readers will recall that we recently posted up Bill Ackman's short presentation on HLF where he called it a pyramid scheme. Brian Sullivan tweeted that Andrew Ross Sorkin spoke with Third Point, who believe there's no evidence HLF is a pyramid scheme in their research.
Third Point believes in the compounder thesis that the stock was trading at an attractive discount (after Ackman's short presentation). Third Point writes,
"Applying a modest 10-12x earnings multiple suggests Herbalife's shares are worth $55-68, offering 40-70% upside from here and making the company a compelling long investmen...
This is the largest topic on ewallstreeter. This topic aggregates news and investment advice from over 200 different news sources. It covers all the financial markets, collectively known as Wall Street, as well as international news which affects our mark