Carl Icahn finally has some good to say about Bill Ackman

Bill Ackman and Carl Icahn
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Carl Icahn supports Bill Ackman for once.

Investor Ackman sent a letter to Pershing Square Capital Management clients late Wednesday saying that he had restructured his so-far losing Herbalife bet by reducing the fund's short equity position by more than 40 percent and replacing it with over-the-counter put options, a type of long-term derivative.

Ackman said the move was to reduce the risk of more mark-to-market losses on the nutritional supplement company—the stock is up about 163 percent since its nadir shortly after Ackman announced a $1 billion short position in December—but that he still has "enormous conviction in our investment thesis."

Icahn, $500 million richer because of Herbalife's ascent, remains happily long.

"I'm certainly happy I made the profit," the chairman of Icahn Enterprises told CNBC late Wednesday about his gain in the stock and Ackman's recent move. "I think his purchase is a judicious one because I continue to believe the company is still meaningfully undervalued."

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