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Bill Ackman made an awkward comment about Korean people and why pyramid schemes work so well with them

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Hedge fund manager Bill Ackman just made an awkward comment about Korean people in a quarterly conference call for Pershing Square Holdings.

The Pershing Square founder was speaking about multilevel marketing company Herbalife — which Ackman believes is a pyramid scheme and has been short for nearly three years.

Referring to the company's expansion into South Korea, Ackman said:

"The reason why Korea is a great market to launch a pyramid scheme is because it's a very tight culture. Everyone speaks the same language. Everyone looks the same."

Ackman quickly backtracked: "Maybe not all Koreans look the same, but to the Caucasians they look the same."

The fund manager is betting Herbalife's stock will go to $0. It hasn't worked in his favor this year, with the stock soaring more than 50%.

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