Herbalife Is Surging After Icahn's Investment Announcement

Shares of Herbalife opened higher this morning after billionaire investor Carl Icahn revealed a huge stake in Herbalife yesterday evening equal to 12.98%, or 14,015,151 shares.

Herbalife is the stock that Icahn's decade-long rival Bill Ackman, the CEO of Pershing Square Capital Management, is shorting. Ackman, who believes the company is a pyramid scheme, is shorting 20 million shares of Herbalife with a price target of $0.

The two hedge fund titans recently brawled in a telephone interview live on CNBC with Icahn hurling zingers a Ackman calling him a "crybaby in the schoolyard."

Ackman responded this morning that he welcomes Icahn's investment in Herbalife and he continues to believe the company is a pyramid scheme.

The stock is now trading above the pre-Ackman short level. It was last trading up $ 6.02, or 15.73%, at $44.29 per share.

Check out the five-day chart:

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