The manager of pershing square capital. (hlf) stock in 2012. Engaging in a public campaign claiming that hlf was a pyramid scheme and pricting that it would eventually be shut down. Ackman was openly conducting a bear raid but what probably kept ackman from being accus of illegal manipulation was that his claims were felt by many people to be true. Initially. Herbalife stock dropp 20%. But ackman held on. Waiting for the company to completely dissolve. While this end up losing him money in the end. It may have also help to avoid sec scrutiny. Since he did not seek to grab a quick profit from his negative comments.
Ackman began shorting herbalife
The hge funds did not seek to inflame country email list matters in the public arena. about gme. It turn out that the sec was more concern about the activity of individual investors who were buying the stock. As they were openly conspiring with others on online chat boards to buy gme stock to ‘squeeze’ the hge funds into covering their short positions at much higher prices. In the end. It was determin that no illegal behavior occurr on either side of the gme affair. Though warnings by the sec were issu. Bear raid example one of the most widely publiciz bear raids of our time was conduct by bill ackman.
Nor did they create any deceptions
Bear raids only become illegal Phone Number BR when associat with manipulative practices. Collusion. Or intentional misrepresentation. Shorting stocks. Even coupl with issuing negative comments on a company. Can thus be perfectly legal if substantiat by facts. 2021 meme stock frenzy the meme stock frenzy of 2021 began with hge funds initially taking sizable short positions in stocks like gamestop. While the funds were expecting to profit from a decline in gme stock. Their actions were legal. As the company had experienc months of declining sales revenues and prospects for the future were dim. In addition.