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Hedge fund hot-shot Daniel Loeb, the founder of Third Point LLC, has made an estimated $108 million profit so far with his long position on Herbalife, the New York Post's Michelle Celarier reports.
Herbalife, a multi-level marketing firm that sells nutrition products, is the stock that Bill Ackman has a massive short position on.
Ackman, who runs Pershing Square, believes the company is a pyramid scheme and has a price target of zero.
Not everyone agrees with Ackman, though.
Just last week, Third Point disclosed that it owns 8.9 million shares, or an 8.24% stake in Herbalife. The Post reports that Third Point purchased the Herbalife shares at an average price of $32.
Shares of Herbalife have rallied back above the pre-Ackman short levels and that's working out nicely for Loeb.
Since December 18, the trading session before Ackman confirmed his short, shares of Herbalife are up more than 3.7%. The stock hit a 52-week low of $24.24 a share on December 24 and it up more than 69% since then.
Shares of Herbalife closed up $4.06, or 10.14%, to end at $44.08 yesterday. The stock was last up more than 3.5% today.
Loeb doesn't believe that Ackman's pyramid scheme claim has any "merit" and he called his rival's bet against Herbalife "preposterous."
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