HELP ME UNDERSTAND THIS " PERSHING SQUARE Vs. HERBALIFE" FIGHT?

General
1

my questions :-

  1. why insists on shorting actual equity instead of its futures ?

  2. he bought a significant percentage of the company stock & then decided to short (why so)?

  3. how can someone maintain a short position for 3+ years ?

2

  1. Futures would mean having to keep rolling over the contracts.

  2. Phew… that is a long article, :slight_smile: can u tell in which page it says he bought first.

  3. Developed markets where the stock lending and borrowing mechanism is matured, you can short and hold for as long as you want.

1 Like
3

he & carl icahn both own stocks , he owns 16-18 % maybe … carl icahn owns more than him … carl icahn still is LONG on the stock … he is SHORT .

  1. futures will need to keep rolling position , but they also can give a chance to book profit .
    **** when he exposed herbalife of running a MLM scam & demanded to know about revenues generated from strict traditional retail sales . the CEO said “THE DATA IS IRRELEVENT FOR INVESTORS” market did not like that answer and stock went down by more than 40% . the stock went back up after a few days .
    if i would have been in his position , i would clearly square-off for a 40% profit , and once-again go short when stock go back up again :slight_smile:
    i am assuming hedge-funds are smarter than me , obviously has a big plan . i just don’t seem to understand what is it ?