Bill Ackman on His Bet Against Herbalife

The video discusses an investment strategy involving Herbalife, where a short position in the company's stock was converted into a put option. This conversion limits exposure to 3% of capital while maintaining the same potential upside. The strategy is presented as more appealing due to reduced downside risk and increased potential gains.

What was the initial position in the company's stock?

• Long position

• Short position

• Neutral position

• Call option

What financial instrument was used to convert the stock position?

• Futures contract

• Swap agreement

• Call option

• Put option

How much of the capital is exposed after the conversion?

• 7%

• 3%

• 10%

• 5%

What is the main advantage of the new investment strategy?

• Increased downside risk

• Limited upside potential

• Reduced downside risk

• Higher capital exposure

From what perspective is the new investment strategy considered more interesting?

• Asymmetric

• Symmetric

• Linear

• Balanced