Bill Ackman, the hedge-fund manager who has mounted a two-year campaign to prove Herbalife Ltd. (HLF) is a pyramid scheme, will extend his bet against the company should he need to.
The cost of maintaining a position in options that profit from a drop in Herbalife shares has declined “substantially” since Herbalife canceled its dividend, Ackman said in his quarterly letter to investors dated today. Most of the over-the-counter contracts Pershing currently holds will expire next year.

“We will extend their terms by paying additional premiums if it is necessary to do so,” Ackman wrote in the letter, which was obtained by Bloomberg News.

Ackman has bet $1 billion against Herbalife and mounted a campaign that was capped by a more than three-hour presentation on July 22 purporting to show that the company is an Enron-style fraud. Investors brushed off his arguments, sending the stock up 25 percent in one day.
Today’s letter also acknowledged that the lengthy presentation and the hype he generated ahead of it were missteps. Herbalife shares, which have since tumbled after the company’s earnings missed projections later in July, are down almost 20 percent in the past year.
Originally reported by Bloomberg

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According to Bidnessetc.com, recent moves are proving the Herbalife Business model to be widely accepted. 
Herbalife Ltd. (HLF) stock is up 4% today, and has gained roughly 7% since Bidness Etc asked investors to go long last week. The rise today, followed the news of Capital Research increasing its stake in the company and a number of insiders taking long positions in the stock. These moves have improved investor sentiment, leading to a rise in the stock. In addition, the company’s long term prospects remain strong and Bidness Etc rates the stock a Buy at current valuations.
According to recent news, Capital Research has increased its stake in the company from 8.5% to 10.1%, joining the league of investors like Carl Icahn and Fidelity Investments, both of whom have stakes larger than 10%. After increasing its stake, Capital Research has become the third-largest shareholder in the company.
The continuing confidence of Carl Icahn and now this move by Capital Research reflects their belief that Herbalife is not a pyramid scheme and that investigations by Federal Trade Commission (FTC) are not expected cause any significant damage to the company’s reputation.
In addition, a number of insiders including Chief Operating Officer Richard Goudis, President Des Walsh, and Chief Financial Officer Desimone, have

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Herbalife, a leading global nutrition company, announced today that dozens of independent Herbalife members and independent business owners will hold a press conference during the Herbalife Extravaganza in Chicago in order to take a stand against the continuing campaign of attacks and misinformation being waged by Bill Ackman and Pershing Square Capital Management.
Thousands of Herbalife members from across North America are gathering this weekend to celebrate the positive impact Herbalife has had on their lives and in their communities.
“Members like me are under attack by a billionaire hedge fund manager who has embarked on an unprecedented effort to take down my way of life, and we want him to know that Herbalife members won’t stand for it,” said Silvia Muir, an Herbalife member from Palatine, IL who will be taking part in the press conference.
“Bill Ackman has displayed a bald-faced hypocrisy in his sham support for Latinos,” said Pablo Caicedo a member from Lincoln Park, IL who will also be taking part in the press conference. “As a Latino, I think it’s important for the world to know the truth: that Bill Ackman is only interested in his own short-sighted financial goals and has a history of investing in

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