Hedge fund manager writes his thesis on why he is shorting Herbalife, a lifestyle products seller.
Share price took a bloody nose dive in 1 week! This shows most of the time the market is being played based on sentiments.
You can read his presentation slides here. It’s a pretty interesting read if you have the time. Some of the things covered:
- Why he thinks their product is a commodity
- As a value investor how does he hunt for that information
- Introducing the readers to MLM and Pyramid Scheme
- How much do distributers earned and how much they stand to lose
- Different ways Herbalife account for cash flows to mainipulate
[Pershing Square | Who wants to be a millionaire presentation | Download PDF]
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