Bill Ackman’s short on Herbalife isn’t new but here comes this super long-form article on the entire saga courtesy of Vanity Fair. (h/t The Big Picture)

After reading it, I got a few thoughts:

  • Ackman’s investors ought to be worried. Very worried. He’s the kind of guy that bets big on ideas and unless you’re savvy enough to measure whether he’s good or just lucky, you may end up either very rich or very poor.
  • The hedge fund world is like any other industry- you have friends and you have enemies. You probably want more friends than enemies because, at some point, you’re going to need help.
  • Managing a fund is a different ball-game from being a retail investor. Ok, I confess that this article didn’t make me think this way but this saga is a good example of how one must contend with other sharks in the market, investor withdrawals, public relations and your reputation if you want to be managing a fund professionally. As a retail investor,  you just find your method and apply it.

Leave any thoughts you have in the comments below.

Bonus Read: The link to The Big Picture has a link to an interview with Ben Bernake (on Vox) that looks interesting too.