Oh gosh, two hedge fund parasites whose machinations at gaming stocks contribute nothing to the real world economy are battling it out over Herbalife
Hedge fund manager Bill Ackman put on a bit dog-and-pony show recently about how Herbalife is a scam. He also shorted Herbalife massively. The stock tumbled. Another hedge fund headed by Dan Loeb has just purchased 5% of Herbalife, leading to a battle of the parasites.
Dan Loeb has bought a stake in Herbalife, according to the reports. The stock is surging. This hurts Bill Ackman, who had a massive short on the stock. More to come.
The important point to realize here is neither is concerned with the company, its employees, or anything except making money by gaming the stock
The original robber barons, ruthless as they were, created value and jobs by building oil, steam, steel, and railroad empires. These hedge funds create nothing of value and are what Marx called fictitious capital and often make money by gaming the system and sometimes by outright illegality. That they are so predominant simply shows the flimsy underpinnings of our financial system.