Instead of surmising whether the magazine cover jinx might now be in play, let’s just take a sec to appreciate one of the greatest years in investor history endlessly outspoken and brimming with shwagger…
Herbalife closed at an all time high yesterday up 5$ in a red tape.
This comes 6 trading days after Bill Ackman’s latest bearish slideshow presentation on the company titled Robin Hood in Reverse.
I read through the preso and it is scathing but, as my friend Brian Shannon says, only price pays.
Remember that after Ackman’s first big presentation at Sohn, HLF got crushed before eventually reversing higher.
Thinking through it a bit more from a behavioral perspective - when an expected and previous response (price decline) to a stimulus (bearish presentation) defies that expectation, the stimulus has been neutralized.
As I mentioned in my note turned in when this paper was intended to be submitted, I have been very busy starting a company from the website I showed you in class. I am taking trips up to New York more than twice a week; sleeping…
(note: I had to remove the Topturn video bc it was autoplaying & driving me crazy. I replaced it with Thelonious Monk because he’s awesome and the video doesnt autoplay. :) You can still watch the Topturn video on their website website.)
Here’s the first hedge fund ad and its a highly produced video. You must give TopTurn Capital credit for having the cohones to be the first to put an ad out there and its well done albeit light on information.
Performance and risk control are more important than associating your brand with the infinite and calming ocean.
Still, wealthy people are not immune to being swayed by evocative images and a smart angle.