Ackman clients shrug off failed Herbalife 'death blow'

Bill Ackman
Jin Lee | Bloomberg | Getty Images

What was supposed to be a banner day for Bill Ackman quickly turned into a colossal embarrassment Tuesday. Herbalife's stock had its best day ever by gaining more than 25 percent—as Ackman gave a presentation that he had proclaimed would be a "death blow" to the company. But Pershing Square Capital Management clients aren't very concerned.

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"We are long-term investorshis track record is amazing," said Bryan Schneider, a Pershing Square investor at EnTrust Capital, which manages $11.6 billion in hedge fund assets for more than 400 institutional investors.

"Yesterday's move was mostly a recovery of losses from selling in advance of the presentation. There was no single 'a-ha' moment, so I think people were saying 'I don't know why we went crazy selling off.'"