A video posted by Reuters yesterday featured famed
, zeroing in on Herbalife (
), the stock in the middle of a heated betting war between
several hedge fund managers.
Although Chanos was reluctant to reveal his actual position on
Herbalife, he did view his opinions about companies like
Herbalife in general, which discloses his stance on the
multi-level marketing business model that Herbalife is comprised
"I know that there are a number of bulls in the company that say
this is nothing than a glorified 12-step program or it's a way
for weight loss," Chanos said. "But I'm a little bit skeptical
about that argument as well because there are so many competing
venues for weight loss that
have the multi-level marketing aspect."
To summarize the eventful happenings in the past couple of
have basically been superfluously vocal about their thoughts on
Herbalife being a pyramid scheme, the primary reason for them
shorting the stock. Ackman's
about Herbalife even persuaded Guru, Whitney Tilson of T2
Partners to announce his short position on the company as well.
"I am short a tiny smidge of Herbalife... and a number of other
multi-level marketers," Tilson said.
Meanwhile, activist investor, Daniel Loeb countered the three
shorts earlier this month with an 8 percent long position on the
company. Carl Icahn later joined Loeb by confirming he too, was
buying a stake in Herbalife.
When Reuters asked Chanos whether he would publicly comment on
the company, he said, "All I'm going to say is we've studied the
industry very carefully...and we'll leave it at that."
Herbalife's market value looks like it craves stability, as it
teeters from recovery after dropping about 15 percent during
Herbalife is priced at $43.31, down 0.48 percent at mid-day
View Chano's interview with Reuters below.
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