Pershing Square's Ackman Files Complaint with SEC Against Soros Over Herbalife (HLF)

Pershing Square's Bill Ackman is said to have filed a complaint with the U.S. SEC stating he believes that George Soros told other hedge funds about his recently acquired Herbalife (NYSE: HLF) stake. Ackman thinks Soros broke insider trading rules.

The NY Post today that Paul Sohn, a portfolio manager with Soros Fund Management, told other hedge funds that Soros was buying Herbalife and would soon disclose a 5 percent stake. The statements were made during idea meetings between fund managers over the past month.

Ackman thinks that Soros was trying to capitalize on his short position by telling the other hedge funds about the stake, which would offer near risk-free profits to the other firms. The Post quotes Ackman as saying, I’m very disappointed with George Soros as I think of him as a humanitarian. Instead, his firm is trying to profit off the backs of low-income Latinos who’ve been misled that Herbalife is the answer to the American dream. He didn't comment on the SEC filing.

Soros' stake in Herbalife was disclosed last Wednesday. Shares popped higher on the news. Today, Herbalife is up 3.2 percent.

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