Dan Loeb Buys 8.2% of Herbalife

Shares of Herbalife were halted by a single-stock circuit breaker earlier today (~10am), after spiking on news that Loeb has entered the arena. If you look at a price chart you'll see a couple massive swings.

I'm not sure how I'll feel about it when all this plays out, but for now, I absolutely love it. Two juggernauts swinging it out over the same company. Loeb has yet to release a several hundred page discertation the way Ackman did with his short, but I'm sure more news will follow. Certainly adds a new perspective to the HLF pyramid scheme debate.

Update: Loeb Explains His Herbalife Bet

Here's a key quote, which I believe summarizes his viewpoint fairly well:


Q&A Interview with SirTradesaLot Part 3/3: Becoming the Boss

Andy note: Here's the final installment of the 3-part interview series with SirTradesaLot. See Part 1, Part 2.

Bio: He has worked in the finance industry for almost 15 years in a variety of roles at global investment banks and asset managers. A few years ago, he left a senior management position in the equities division of a large asset manager to start a hedge fund/asset management firm with former colleagues.

Becoming the "Boss"...
If you have a goal of managing a team or moving into senior management, there are steps you can take to increase your odds. Many people think that you need to be given a formal leadership position before you can start managing or leading people. I think most people have that backwards.


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Negotiating Offer before, during, and after interview (Follow up)

I recently negotiated an offer and wanted to post about my positive experience. This is the first time I have negotiated an offer and in preparation I looked through the previous posts and asked for a bit of advice from SirTradesaLot for help in the process.

Negotiating an offer is like a dance, both partners need to know how to tango in order for both parties to leave feeling satisfied. More than likely, the potential employer (HR, future boss, Hiring manager) will have a greater amount of experience negotiating offers. So ensuring you are caught up on the steps is important. For those of you that think that negotiating an offer will tick off your future employer, it will not if you do it correctly. After going through it, I feel like they respected me more for negotiating what I thought I should make. For all those who might be negotiating an offer please read through these links, they will be extremely helpful.

Here are few things in the below posts I found most helpful/applicable to my recent experience (take a look at the posts and the video for more details):

1) Anchoring


A Little Pension Fund Love

Morning Monkeys,

I've come to notice very little love for pension fund jobs here on WSO. Do they pay as much as PE or IBD? Nope. But there some real highlights to jobs at pension funds, especially public employee pension funds, namely that they tend to be 9-5 jobs, and many really love CFA charterholders (see, they're good for more than just ER and AM!). Also, I hear that many offer these peculiar, seldom heard of benefits called "pensions" where, after a period of time working, they pay you to not work. Crazy!


Is $2,000 Spaghetti the New Killing It?

Just try and watch this without laughing. New York restaurants are no strangers to pimping outrageous dishes to garner attention, but I think this one is going to backfire. A $150 Kobe beef hamburger? Yeah, I can almost see that. But a $2,000 plate of spaghetti (which doesn't even include a bottle of wine)? C'mon, bro. Just keep in mind, kids, that in 2006 first-year analysts would've been knocking each other over to order this monstrosity. Bon appetit:


Anyone ever burnt bridges on the way out? Let hear it...

So I've officially accepted a position with a BB's IBD, but due to scheduleing and paperwork I don't expect to start prior to March.
In the mean time I'm going out of my skull at my current ER position. I don't want to take a month off in between gigs, and being my cautious self I don't want to drop that I'm planning on leaving yet, just in case something goes wrong prior to actually starting.

Basically, it's beautiful to be sitting here knowing that I'm done before we get hit with the next big reporting season, and I'm looking forward to giving notice to see if they throw me out or want me to stay and train my replacement. On the other hand it's killing me to wait and keep grinding on the models. Worried I might rage quit next time I get asked to do something stupid.

Currently, I'm fantasizing about different ways to quit, wordings for the final email etc.. Anyone ever quit in a great way?


IBD SA: Rank these 5 applicants

Just for shits and giggles, and because we love this stuff - imagine you're scanning over resumes for SA applicants at your BB. You're under pressure to bring in one intern who will kick ass and get the dirty work done and make you look good.

How do you rank these five:

edit: assume several "targets with 3.8+ GPA's with CS/Econ/Finance majors who have previous experience in banking/S&T/Hedge Funds/PE etc" have already been chosen and your department wants to select some candidates with other varying backgrounds to "round out" the SA class


10 Reasons Why You Have to Quit Your Job This Year

Mod Note: This is a syndication from jamesaltucher.com

1) The middle class is dead. A few weeks ago I visited a friend of mine who manages a trillion dollars. No joke. A trillion. If I told you the name of the family he worked for you would say, "they have a trillion? Really?" But that's what happens when ten million dollars compounds at 2% over 200 years.

He said, "look out the windows". We looked out at all the office buildings around us. "What do you see?" he said. "I don't know." "They're empty! All the cubicles are empty. The middle class is being hollowed out." And I took a closer look. Entire floors were dark. Or there were floors with one or two cubicles but the rest empty. "It's all outsourced or technology has taken over for the paper shufflers," he said.

"Not all the news is bad," he said. "More people entered the upper class than ever last year." But, he said, more people are temp staffers than ever.

And that's the new paradigm. The middle class has died. The American Dream never really existed. It was a marketing scam.


A Manufactured Crisis

This honestly has to be one of the dumbest 'crises' we have ever been in. After a series of arbitrary dates determined by short term, kick-the-can down the road fixes set by Congress, we have once again reached the debt ceiling. Once again the GOP is demanding considerable spending cuts in exchange for agreeing to raise the limit, and once again Barry doesn't think he has to entertain the idea. Timmy G's "extraordinary measures" are fast becoming the norm.

But the reality is that we aren't in a crisis at all.


Fast Food Diplomacy

The US military continues to strain relations with the Pakistani government through ongoing and relentless drone strikes into sovereign territory along the Afghan border. And while you'd expect the people of Pakistan to reject all-things American in response to our efforts, it turns out that isn't the case.

Why you ask?

Shockingly, it's because of a growing Pakistani middle class' love of American fast food.


ITF's New Year's Resolution: Head Of Metal

Alright dear monkeys, for my first post of 2013 I feel it's appropriate to let you all know about my New Year's resolution--a muse project called Head of Metal, "the most accessible heavy metal resource on the web."

Head of Metal's roots came in 2012 when I started writing late-night heavy metal-themed posts for WSO. Our very own Chief Monkey Patrick Curtis encouraged me to create my own separate blog, and has been a constant source of ideas and advice. "It's already got the most badass logo you've ever seen," he has gushed in the CU chat.


Quit making pitch books and pick up a magnifying glass, Sherlock!

Maybe it's time to look beyond the coveted i-banking "gig" or the elusive corporate finance position. According to Kathy Lavinder, a headhunter, "the war for talent has driven up salaries for sleuths and security consultants by 20-25% since 2010."

Even more notable are the opportunities for deals in this industry. Figures show that even with the recent economic downturn, there is an increase in fraud litigation, asset-tracing, and insolvency work. Some recent jobs have included the investigation of the failed Kabul bank in which $1 billion was allegedly embezzled. For companies like Kroll, who are industry leaders, their client base only continues to grow.

Hedge-funds and private equities alike are using their services to send sleuths around the world to investigate ex-employees from unreliable accounts in countries like China before acquisitions. Risk mitigation companies such as Kroll are also revolutionizing the term of "self-diligence."