Bill Ackman’s controversial negative bet on
Herbalife continues to give him nightmares. Shares of the
multi-level marketer of health and nutrition products surged
11.6 percent on Friday, to close at $69.40. The company
reported first-quarter revenues and earnings that beat
consensus forecasts. It also lifted its guidance for the rest
of the year.
Herbalife’s surge comes after
Pershing Square Capital Management earlier unloaded its
huge, losing stake in Valeant Pharmaceuticals International. As
a result, it had moved into positive territory in April.
Pershing Square Holdings, Ackman’s public fund,
reported it gained 4.6 percent for the month and is up 1.9
percent for the year.
Greenlight Capital short Tesla rebounded by 4.4 percent, to
close at $308.35, after dropping 5 percent on Thursday after
the company reported quarterly results. In addition, UBS, which
has had a sell recommendation on the stock, warned clients the
electric car maker and solar company is "still facing many
challenges in the second half." UBS says it is cautious on the
Model 3 launch timing and potential profitability. So, it
lowered its 2017 estimate — in other words, it widened
its expected loss — and maintained its sell rating and
$160 price target.
The HFRI Fund Weighted Composite Index gained 0.59 percent
in April, boosting its gain for the year to 3.09 percent. In a
HFR noted that last month managers were "positioned for the
upcoming European elections and investors reacted to progress
on new tax and healthcare legislation." The Event-Driven index
led April performance, thanks to activist funds.
HFR’s Activist sub-strategy index rose 2.03
percent last month, its best gain since December. The Merger
Arbitrage index rose 1.1 percent in April.
April was another rough month for
CTAs, as all five indices tracked by Société
Générale were down last month. The SG Trend Index
was off 1.03 percent, as 80 percent of the index’s
constituent CTA trend strategies contributed negative
performance, according to the investment firm. It is down 1.88
percent for the year. The broader SG CTA Index was off just
0.15 percent for the month as 8 out of the 20 constituent
strategies contributed positive performance. It is down
slightly for the year.