March 15, 2014 --

LPR was interested to find, as lead story in The New York Times, March 10, news that hedge fund manager William A. Ackman got Rep. Linda T. Sanchez, (D-Ca) to write to the Federal Trade Commission calling for a probe of Herbalife, described as a "nutritional supplement company."

LPR quotes from the article: "The [Sanchez] letter was a small hint of Mr. Ackman's extraordinary attempt to leverage the corridors of power--in Washington, state capitols and city halls -- for his hedge fund's profit after taking a $1 billion financial position called a short, a bet that will pay off only if Herbalife's stock drops." Apparently, the Ackman strategy, first reported more than a year ago, is still active, as of March 13.

Seems to LPR that the Securities Exchange Commission should probe Ackman's practice against Herbalife of taking a short position in company he has targeted " for destruction. The Times article also reports that "civil rights organizations" were paid to complain about Herbalife. Next time activist groups start protesting, LPR concludes it would be prudent to inquire into their financial backers.