Hedge fund manager Bill Ackman said on CNBC today that he would give the "most important" presentation of his career on Tuesday when he unveils an investigation into Herbalife's nutrition clubs.
In December 2012, Ackman, who runs Pershing Square Capital, gave a 342-slide presentation publicly declaring that he's shorting Herbalife — a multilevel marketing company that sells weight-loss shakes and nutritional supplements.
It's Ackman's contention that the company operates as a "pyramid scheme" that targets lower-income individuals. He believes that regulators, specifically the Federal Trade Commission, will be persuaded to shut it down. Back in March the FTC launched an investigation into the company.
Ackman told CNBC that he's going to show everyone on Tuesday why Herbalife will collapse. Shares of Herbalife were last trading 11% lower on Monday.
CNBC personality Jim Cramer thinks that Ackman will annihilate the stock.
I reiterate that i expect Ackman to wipe out $HLF because that's his job. When it is your job, that's what you do.
— Jim Cramer (@jimcramer) July 21, 2014I reiterate, Ackman has decided to put $HLF out of business so he will. It is not that hard to do that if you have a ton of money.
— Jim Cramer (@jimcramer) July 21, 2014
Ackman has yet to break even on his short.
The stakes are set high for this presentation.
SEE ALSO: ACKMAN: I Believe Arrests Are Coming In The Herbalife Story
