A Wall Street Genius's Final Investment Playbook-Chapter 150

There was a reason why Asso was so strongly opposed to it.

It was because Herbalife was a company that manufactured and distributed protein shakes and weight management products.

“The moment you make such an investment, you’ll be committing style drift… That’s extremely risky!”

Style drift refers to a phenomenon where an investment portfolio deviates from its original strategy.

If I, who had built my reputation on an 80% accuracy rate in the healthcare sector, were to invest in Herbalife, it would be a clear strategic deviation—a style drift.

Strictly speaking, the Herbalife case was an entirely different field.

“At this early stage, such a move would be particularly fatal!”

It wasn’t wrong.

Even if it made money, profits earned by deviating from strategy could have a negative impact on fund management.

‘It’s like putting up a sign that says “Cold Noodle Restaurant” but serving delicious pork cutlets instead.’

No matter how great the taste was, the trust in the restaurant as a cold noodle shop would crumble.

Of course, I had no intention of making such a foolish choice.

“Yes, I’m not considering expanding into other sectors yet. For now, I should focus on the healthcare field.”

“Are you really… sure?”

“Yes. If I recklessly meddle in other areas, I’d lose more than I gain. I have at least that much common sense.”

“Well, if that’s the case, that’s a relief, but… given how you’ve acted so far…”

Even though I reassured him repeatedly, Asso couldn’t shake off his doubts.

So much distrust.

It was at that moment.

“By the way, Sean. Your algorithm… is it limited to healthcare?”

From behind Asso, Dobby peeked his head out and suddenly asked.

“Or can it be applied to other fields as well? For example, something like Herbalife…”

“Why are you suddenly asking that question?”

Asso exclaimed in surprise, but Dobby continued nonchalantly.

“Strictly speaking, even during the Epicura case, it was a different field, so I was just curious… Aren’t you?”

“Well…”

Even Asso hesitated, glancing at me.

He seemed curious as well.

“What do you think? Long or short?”

A long (long) position is a strategy that anticipates a rise in stock prices, while a short (short) position is a strategy that bets on a decline.

In other words, Dobby was asking whether Herbalife’s stock price would go up or down.

But in reality, it wasn’t just Dobby who was curious.

At that moment, everyone on Wall Street was fiercely debating this issue.

To fully understand this situation, one had to grasp the complex background surrounding Herbalife.

Here’s a brief summary.

At the end of 2012, Ackman launched a massive $1 billion short-selling campaign against Herbalife.

What he focused on was Herbalife’s unique sales model—multi-level marketing.

Ackman defined it as a “pyramid scheme” and urged regulatory authorities to intervene.

At first, it seemed like a typical short-selling case…

But soon, an unexpected twist occurred.

The legendary corporate raider of the 1980s, Carl Icahn, stepped in to directly counter Ackman’s short-selling.

“Multi-level marketing itself is not illegal. The problem is when profits are generated solely through recruiting salespeople rather than selling products. Since Herbalife has solid product sales, it cannot be considered a pyramid scheme.”

Icahn strongly criticized Ackman, claiming, “He is falsely portraying a legitimate company as a scam just to profit from short-selling.”

But Icahn didn’t stop there.

He invested a staggering $1 billion and secured a 17% stake in Herbalife.

In direct opposition to Ackman’s short position, Icahn took a long position.

Thus, a battle between two titans was set in motion.

Each wagered $1 billion.

If the stock price rose, Icahn would win; if it fell, Ackman would win.

The two giants engaged in an intense battle over Herbalife, and this clash eventually became one of the most legendary short-selling events in history.

‘It was such a huge issue.’

If this had been just a simple investment battle, it might not have attracted so much attention.

But what truly made this fight fascinating was the deep-seated personal rivalry between the two titans.

They had already clashed in court years ago and were sworn enemies.

This Herbalife war was their second showdown in a decade.

“So, long or short?”

Dobby pressed me again, but I simply smiled.

Of course, I knew how this battle would end. fɾeeweɓnѳveɭ.com

The long position would win, and the short position would lose.

In other words, Ackman would be defeated.

‘The problem is… that won’t happen until four years later, in 2018.’

“…You’re not planning to get involved in that fight, are you?”

Asso suddenly grew anxious and tried to dissuade me again, but I answered firmly.

“As I said, I have no intention of doing that.”

I was being sincere.

There was no reason for me to meddle in the Herbalife fight.

It would be like a shrimp getting caught in a whale fight.

Of course, I wouldn’t be crushed, but the impact of my investment would be minimal compared to the scale of the battle.

Who would even notice a shrimp in the midst of two whales clashing?

However.

‘That doesn’t mean I have to let this golden opportunity slip away.’

This whale fight was going to be a legendary event.

‘Even if I don’t jump in directly, there are plenty of ways to take advantage of it.’

For example, what if instead of joining the existing battlefield, I started a new fight against Ackman?

And what if my intervention forced Ackman to fight on two fronts?

Perhaps the war that took four years in my previous life could end in just a few months.

All because of a single shrimp.

Then, the tale of a whale fight being decided by a tiny shrimp would be complete.

‘If things go according to plan, this will be the best scenario.’

However, there was one small problem.

‘Ackman has no reason to accept this fight…!’

After meeting him earlier in the session, I realized he was quite a sharp decision-maker.

Would such a person, already engaged in a full-scale war with his rival, really waste his time and resources dealing with a single shrimp?

‘Of course not.’

Then, I would have to create a situation where he had no choice but to fight.

Checking the masterpiece on my wrist, I saw that quite some time had passed.

“Wait a moment!”

“Where are you trying to go?”

The moment I tried to rise from the sofa, Asso and Dobby panicked and pushed me back down.

It seemed like they were determined to keep me confined in this suite…

Unfortunately for them, they wouldn’t be able to stop me this time.

“In fifteen minutes, there’s a session with Mr. Kissinger. If I don’t at least make an appearance, he’ll be disappointed. Would that be okay?”

***

The Context Summit was known for addressing major industry issues.

One of the hottest topics at this summit was the Theranos scandal that had shaken the healthcare industry.

The organizers had hastily invited Kissinger as a speaker to hold a fireside chat on “Lessons from the Theranos Scandal and Corporate Transparency.”

However, Kissinger began discussing the “lessons” from the incident from a rather unexpected perspective.

[The most important figure in this case was a young man. He not only discovered the problem but, despite his status as a mere junior analyst, boldly chose to confront it head-on. We need to ensure that such young people can thrive on even greater stages in the future…]

A fireside chat is a session designed to create a relaxed atmosphere, as if having a conversation by a fireplace.

But no matter how much it encouraged free discussion, this long-winded praise seemed to stray too far from the main topic…

‘This is a bit much.’

Even as the person being praised, I couldn’t help but think it was excessive.

After the session ended, I headed to the waiting room.

When I opened the door, Kissinger greeted me with a bright smile.

“Sean! Glad you came.”

“Have you been well?”

“Thanks to you, yes.”

Kissinger warmly clasped my hand, his smile filled with genuine affection.

There was a reason he held me in such high regard.

During the Theranos scandal, when he was hesitating until the last moment to testify in court, I had given him a decisive piece of information.

— The Wall Street Times is set to release an exposé the day after tomorrow.

At the time, the public was waiting for a hero who would break through the wall of NDAs.

But what really mattered was the timing.

If the article had revealed the truth before he did?

Kissinger would have been forever branded as someone who had sided with Holmes until the bitter end.

However, thanks to the well-timed information I provided, he was able to take the stand at just the right moment and ultimately emerged as a national hero.

By a razor-thin margin, he had gone from being a villain to a hero.

To him, I was nothing short of a benefactor.

“How’s the fund doing? Is the capital raising going smoothly?”

“Yes, thanks to you.”

Because of Kissinger’s strong endorsement, I had been able to raise a staggering $5 billion with relative ease.

But there was a small problem…

Most of the investors who had responded to his recommendation were family offices and high-net-worth individuals.

In other words, despite his backing, institutional investors had shown little interest.

‘Should I take this chance to appeal a bit?’

I let a faint smile form on my lips and subtly cast a shadow over my expression.

I also added just a hint of bitterness—too much would backfire.

“You seem to have something on your mind.”

As expected of a legendary diplomat, Kissinger keenly picked up on the subtle change in my expression.

I quickly adjusted my face and waved my hand in feigned embarrassment.

“Huh? No, it’s nothing…”

At this point, I needed to act like I was thinking, ‘How did he notice?’

“You can’t fool my eyes.”

Hearing those words, I let out a helpless chuckle and spoke, as if reluctantly.

“It’s not exactly a worry… but there is something on my mind. Since I lack experience and data, institutional investors don’t seem to trust me yet…”

“Haha, that’s just how they are. They’re slow to move and won’t budge until they see results with their own eyes. But don’t worry. You’ll earn their recognition soon enough.”

It was a vague answer.

He was expressing unwavering confidence that I would succeed eventually, but he wasn’t showing any intention of stepping in right now.

‘Should I push a little harder?’

That thought crossed my mind for a moment, but I soon let it go.

If my only goal was securing capital, I could use Kissinger to pressure institutions into investing.

But what I needed now wasn’t just money—it was credibility.

Forcing them to invest would only breed resentment toward me, which would be a long-term disadvantage.

‘Rather than that…’

There was another area where I did need his help right now—creating a stage to provoke Ackman.

It was time to bring up the real topic.

“In time, everyone will recognize you. Don’t be too impatient.”

“Do you really think so…”

As I trailed off, uncertainty flickering in my voice, concern spread across the old man’s face.

For the first time, the ever-confident me was showing signs of doubt.

“Did something happen?”

“Oh, no. It’s nothing… I just overheard something that’s been bothering me…”

“What is it? Tell me.”

I hesitated for a moment before biting my lip and cautiously speaking.

“Someone said… that my success was nothing more than a one-time stroke of luck. That I shouldn’t be deluded. And that the fact I wasn’t even invited to the Welcome Party should be proof of that…”

The Welcome Party was an exclusive event.

Only VIPs, key speakers, and industry giants received invitations.

I hadn’t been invited.

Hearing this, Kissinger couldn’t hide his shock.

“You didn’t receive an invitation?”

“To be fair, my fund is still new. It’s only natural.”

‘I’m not on their level yet.’

Even at the Theranos session, they had invited Kissinger as the speaker instead of me.

It was the same reasoning—I simply wasn’t important enough yet.

“It’s really not a big deal. It’s just… some people are twisting the situation and spreading malicious rumors. I don’t care at all.”

I tried to sound indifferent, but my eyes carried a tinge of loneliness.

Seeing that, the old man made up his mind.

“No, this is clearly a mistake.”

Soon, his secretary was busy making calls.

He was pressuring the event organizers under his name.

Good.

All my efforts to turn him into a hero were paying off.

***

An hour later, I stood on the deck of a luxurious yacht.

I had been invited to the Welcome Party.

The party was a spectacle of extravagance.

Dazzling lights illuminated the night sea, the fresh ocean breeze brushed against my skin, and waiters bustled about with champagne and cocktails.

Looking around, I saw the titans of global finance and economics gathered in one place.

“Let me introduce you. This is Sean, who played a major role in the Theranos case.”

Thankfully, at an event like this, Kissinger personally escorted me around, introducing me.

I had made sure to act dejected earlier, playing up the idea that I might be overlooked even at the party itself.

Thanks to him, I was now conversing with powerful figures I normally wouldn’t even have access to.

Renowned hedge fund managers.

The IMF President.

The CEO of JPMorgan Chase.

The CEO of Amazons.

If I had come here alone, I wouldn’t have been able to say much beyond a few polite greetings.

But with Kissinger by my side, the situation was completely different.

“This young man is going to bring major changes to the financial world. It’s rare to see someone making money while doing the right thing.”

With him hyping me up like this, I had no choice but to play along.

“When is your fund launching?”

“I heard you’re using an activist strategy. Do you have a target company in mind?”

As I engaged in deeper conversations, I discreetly scanned the room.

Networking was great, but I had another purpose for being here.

‘Where is Ackman?’

Fortunately, my target soon revealed himself.

In the distance, a man had briefly frozen upon spotting me.

It was none other than Ackman.

I smiled at him.

Then, I nudged Kissinger beside me.

“Sir, there’s someone I’d like to greet.”

“Who is it?”

“Over there…”

I subtly gestured toward Ackman.

Kissinger let out a hearty laugh.

“Haha, well then, let’s go say hello!”