Einhorn Closes Herbalife (HLF) Short, Ackman Stands Alone

For months investors assumed hedge fund manager David Einhorn had a short bet on multi-level marketing company Herbalife (NYSE: HLF). The speculation began in May during a conference call when Einhorn grilled Hebalife management. Rumors intensified when hedge-fund manager William Ackman announced a short position on the stock. Shortly after rival hedge fund managers, including Daniel Loeb's and activist Carl Icahn, announced they had bought the stock. This set up what many called 'clash of the titans' al a Ackman-Einhorn vs. Loeb, Ichan and Friends. Now, it seems, Ackman's short is riding solo.

According to reports in the Wall Street Journal, David Einhorn told investors at a client meeting Tuesday that his hedge fund had bet against Herbalife last year but was no longer short the stock. The report sites people familiar with the firm and claims Einhorn didn't want to butt heads with Loeb.

Representatives from Einhorn's hedge fund, Greenlight Capital refused to comment to StreetInsider.com on the report, but if true it could spell more trouble for Ackman's short. Rumors say a number of hedge funds are ganging up on the hedge fund manager in an attempt to create a massive short squeeze. In fact, some are predicting "the mother of all short squeezes". The company also has a $950 million share buyback plan in place that they plan to actively pursue.

Shares of Herbalife Ltd. are down 2 percent into the close.

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