Indeed, he is so confident Pershing Square will start reeling in the profits from its Herbalife trade that he plans to donate $10 million — pegged to his future Herbalife profits — to TheDream.US, a charitable organization.
Ackman called the donation “an advance” on his promise, made in 2012, that he will donate every penny of his personal profits from the short sale to charity.
The trade is “break-even” now, he said, adding that he will profit off every dollar the stock declines from here on in.
TheDream.US provides scholarships to immigrants who have been provided temporary relief from deportation. Ackman said he chose this charity because of his belief that “the main Herbalife victims are people of Latino origin.”
Ultimately, Ackman aims to donate as much as $200 million to charity from his Herbalife profits, he said.
“It’s been a mixed bag, for sure,” he said of the investment. “If I could have started in 2014, I would look like a genius,” he said jokingly.