If it is true that Icahn's fund is attempting to bring pain on two of Ackman's front (HLF AND JCP).........
then I believe that this is not only about money with Icahn, but also about teaching Achman (and any other 'would be' persons) a lesson for insulting and talking badly about him, AS WELL AS bringing to light some of the inner workings of the hedge fund industry. I have heard Carl say countless times on television that he doesn't think any hedge fund manager should be televising their positions and drawing so much attention to them intentionally (although most here would agree that it was to quickly get some paper profits onto the books for his managed fund for the fourth quarter).
I have to believe with Carl's swift building of a position with HLF, having the company put two of his own people onto their board of directors and their drawing criticism of JCP's bond matter that Icahn is attempting to bring Ackman's hedge fund down or cause a huge withdrawal of funds from it (as the windows for withdrawal open). Many of the clients in his fund are savvy people and must know of these very public confrontations with the legendary Icahn (and the bond matters in JCP). They must be calling him requesting that they be let out of the fund or put into cash. At what point does Ackman start to get pressured and hedge his position further or start liquidating it by covering his short position in HLF?
My only questions are, "how will this play out and in what time frame?" I would think this would happen sooner rather than later. Icahn has been around for a long time and has earned the respect of many influential and rich people. I imagine that we will see many larger institutions jumping on his coat tails for the trade. But will it continue to be a roller coaster from this point with the occasional retaliatory strike from Ackman or will he remain quiet to prevent from publicly #$%$ off Icahn ( I think he will remain quiet but move behind the scenes to prod the FTC to action...).
Any constructive thoughts regarding the future moves of this particular stock???
Sorry - I'll try and contribute some constructive thoughts:
Icahn is out to destroy Ackman: So I don't think he will wait long to move HLF into negative territory for Ackman which should be priced in somewhere between $47 - $55 - Now with all the news out Icahn has to assume Ackman is smart enough to see where it's going. Shouldn't be long.
I don't know the exact details of what's going on with JCP and it's bonds, or how that effect JCP price. But Icahn is a very smart investor and obviously has very smart people working for him. They will do whatever it takes to pressure Ackman's investors into leaving his fund. I don't know how all this works, but don't need too, Icahn will take care of it, trust me.
I'm sure Herbalife's buyback has been communicated and timed perfectly with Icahn to cause the most pain possible to Ackman.
Ackman doesn't have any bullets left, for you shorts waiting for his next move. His next big move won't be in your favor, it will be covering...
Of course it's personal. Anyone who has followed this closely knows that. Stop believing everything you hear in the news. Icahn is going to speak nicely for now, but trust me will show his true feelings publicly once Ackman is buried. There will be a lot of "I Told you so's" coming out of Icahn's mouth.