Jan 25 Activist investor Bill Ackman said on
Friday that he was confident in the ability of JC Penney Inc
Chief Executive Officer Ron Johnson to turn around the
Ackman, whose Pershing Square Capital Management hedge fund
has taken a long position in JC Penney, told CNBC that the
company would "make progress" under Johnson's leadership.
He added, however, that Johnson might be the wrong choice
for chief executive if the company does not recover in three
"If three years from now, Ron Johnson is still struggling to
turn around JC Penney, he's probably the wrong guy," Ackman
Shortly after his comments on JC Penney, Ackman feuded with
activist investor Carl Icahn about a nearly 10-year-old
investment the two had agreed upon.
They also feuded over Ackman's publicly announced "short"
of, or bet against, the shares of weight-loss and nutrition
product company Herbalife Inc..
Meanwhile, shares of Herbalife surged after Icahn said that
Ackman, by going public with his big short on the nutritional
supplement company, would cause the "mother of all short
squeezes" in the stock.
A short squeeze is when short sellers are forced to cover
their position, a move that pushes a stock higher.