Sometimes nothing is more entertaining than a good old-fashioned knock-down, drag-out fight among the super-wealthy. Back in December, Bridgehampton resident Bill Ackman, the CEO of Pershing Square Capital Management, shorted more than 20 million shares of the multilevel marketing company Herbalife. He stated that in his opinion, Herbalife is a "pyramid scheme." But he's lost a lot of money since December—as of yesterday, the stock is up 53% in 2013--and it seems like it's partially because powerful people find him arrogant and irritating.
One of the most powerful is legendary corporate raider and East Hampton resident Carl Icahn. Icahn said on CNBC that Herbalife was undervalued and took a large stake in the company, sending the stock higher. He also said that Ackman was like "a crybaby in the schoolyard." In Barron's, Icahn stated "Look, I'm in this to make money. That's what I do. The fact that it might hurt Ackman, I'm not going to run and cry and do penance. You might like to say that it's the strawberry on top for me, that's up to you."
Daniel Loeb, another East Hampton billionaire resident, and the CEO of Third Point LLC, also has a big long stake in Herbalife. He also can't stand Ackman, although they are former friends. He stated that the pyramid scheme claim for the multilevel marketing company is "preposterous."
Feuds among financial titans can get very expensive.
· Where do the billionaires in the Hamptons live? [Curbed Hamptons]