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Carl Icahn Boosts Stake in Herbalife

Thursday, 7 Mar 2013 | 5:59 PM ET
Carl Icahn Boosts Stake in Herbalife
Activist investor Carl Icahn purchased an additional 2 million shares in Herbalife, increasing his stake to 15.55 percent, according to a 13D regulatory filing.

Activist investor Carl Icahn purchased an additional 2 million shares in Herbalife, increasing his stake to 15.55 percent, according to a regulatory filing.

Icahn, who recently tussled publicly with Pershing Square's Bill Ackman over his massive short position in the company, revealed the increased stake in the multilevel-marketing company in a Securities and Exchange Commission 13D filing.

Shares of Herbalife gained 1.5 percent in after-hours trading to $41.63 around 5:30 p.m. ET.

On CNBC, the "Fast Money" traders weren't jumping into Icahn's trade.

"I think it's sport for him," said Karen Finerman of Metropolitan Capital Advisors. "Maybe he loves Herbalife, but I think it's more sport."

StockMonster's Guy Adami thought that Ackman – who called Herbalife "a pyramid scheme" – would find some vindication in his $1 billion short on the company.

"I hope Carl's got an exit strategy because my sense is that Ackman's going to wind up being right in terms of – maybe not the stock action – but I think his premise is going to wind up being right," he said.

(Read More: Carl Icahn: Why I'm Betting on Herbalife)

Brian Kelly of Shelter Harbor Capital said that the move highlighted the dangers of investing.

"This is fascinating to watch. But I think it goes back to trading in general," he said. "You can be right on all the analysis that you do, and you can still lose money. And this might be one of those cases."

Trader disclosure: On March 7, 2013, the following stocks and commodities mentioned or intended to be mentioned on CNBC's "Fast Money" were owned by the "Fast Money" traders: Guy Adami is long C; Guy Adami is long GS; Guy Adami is long INTC; Guy Adami is long AGU; Guy Adami is long MSFT; Guy Adami is long NUE; Guy Adami is long BTU; Karen Finerman is long AAPL; Karen Finerman is long BAC; Karen Finerman is long C; Karen Finerman is long JPM; Karen Finerman is long WMT; Karen Finerman is long TGT; Karen Finerman is long MSFT; Karen Finerman is long GOOG; Karen Finerman is long HRB; Karen Finerman is short SPY; Steve Grasso is long AAPL; Steve Grasso is long ASTM; Steve Grasso is long BA; Steve Grasso is long GOOG; Steve Grasso is long GDX; Steve Grasso is long LF; Steve Grasso is long LNG; Steve Grasso is long MHY; Steve Grasso is long PXD; Steve Grasso is long NVIV; Steve Grasso is long PFE; Steve Grasso is long S; Steve Grasso is long VLO; Steve Grasso is funds long HPQ; Steve Grasso is funds long MU; Steve Grasso is funds long ZNGA; Steve Grasso is funds long GM; Steve Grasso is funds long USG; Brian Kelly is long BOVESPA FUTURES; Brian Kelly is long S&P 500 FUTURES; Brian Kelly is long GOLD FUTURES; Brian Kelly is short Copper futures;

For Mark Mahaney
A member company of RBC Capital Markets or one of its affiliates managed or co-managed a public offering of securities for Facebook, Inc. in the past 12 months; A member company of RBC Capital Markets or one of its affiliates received compensation for investment banking services from Facebook, Inc. in the past 12 months; RBC Capital Markets is currently providing Facebook, Inc. with non-securities services; RBC Capital Markets has provided Facebook, Inc. with investment banking services in the past 12 months; RBC Capital Markets has provided Facebook, Inc. with non-securities services in the past 12 months.


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