guys little bill ackman make bigger bets than that all the time. valiant was a big bet. had that not happened at the same time, maybe we're talking about bill ackman in a different way of the that was a devastating loss in valiant compounded by what was going on in herbalife and it just makes it difficult. >> you said he's relenlless and would have gone to the ends of the earth. who didn't allow him to go to the end of the earth, was it his investors or -- >> the writing was on the wall for a long time. i think icahn did. when carl showed up, it moved the goalpost made it so it was impossible to overcome. bill never saw icahn coming, he never expected icahn to be there and when he showed up, how do you get over that bar? he knew that icahn wasn't going anywhere, he knew his position was so large and was growing over the last five years that that mother of all short squeezes that he first talked about on our show back in january of 2013 was going to slowly and slowly and slowly -- >> i remember that conversation. carl icahn made it clear, he actually did it at the very ea

same with ackman, they have lockup periods so you can't pull the money out.: one eighth at a time. >> for pershing square. here's what i know, that people at both of the funds are bracing for massive redemptions. as of now they are saying they're going to stick it out. they're going to stay in the business, but there does come a point where enough's enough and you manage your own money, and some of the things that i hear is that both guys, einhorn and ackman have a lot of money, the employees of ackman's firm have $5 billion in the fund, it's a substantial hedge fund if you took out the outside money, you know, they're clearly talking inside these shops about them becoming family offices. now they say that's not the case now, they have no plans but if it keeps going the way it's going not stopping, they got issues. that's where it is. it's an amazing fall from grace from where they were nine years ago, amazing story. liz: we are hearing breaking news of 5. 3-magnitude earthquake near los angeles am the lapd tweeted -- they also said please keep 911 lines open

we need to be much more aggressive we need to take the fight to ackman. >> why did ackman make it so binary what was that about? >> he was betting the government was going to intervene and shut h herbal life down i laid out the strategy and what he did. >> it read so fast it was a page turning. did icahn bet with -- >> you know, revenge is a powerful thing but psyicahn is not stupid. if he didn't believe he would make a lot of money in herbalife, he wouldn't have done it. >> i was there i watched it i knew all of the figures. i didn't, it turned out i knew nothing. this book is a page turner even if i, hey i wouldn't give you my, whatever, i love the book great. "mad money" back after the break. >> announcer: lightning round is sponsored by td ameritrade >>> it is time it is time for the lightning round on cramer's "mad money." we'll play this sound -- [ buzzer ] -- and then the lightning round is over. are you ready, skee-daddy? it's time for the lightning round on cramer's "mad money." starting with barbara in new york. >> caller: booyah, jim question about u.s. steel. >> no. we ar

their money back from bill ackman, including blackstone. more details this hour. s.cks off session highs, but still in the green. abell: we are looking at gains for the major averages, but we are well off the highs. the s&p 500 and the dow up more than 1%, but we are now looking at more modest gains. all of this represents a relief rally for monday's selloff, new action tuesday morning that turned to a bullish reversal. overall, we are looking at gains in the major averages. relative to the dow, take a look at it over the last two days. the, from the trough to peak, more than a thousand points. relief that a trade war will not pass in the near term. said, we have had so much volatility this year. the bloomberg and take a look at the urine have chart of the doubt. you can see this and the bloomberg. this year though, we have , and up and down. there are two things to point out here. this tells you the seller are really pouncing on the buyers. monday, thataw on is lower than what we saw in february. this is bearish. tell yous and highs the seller are taking advantage o

ackman does not have a dog in this fight.ut fighting. >> he is saying it is a terrible deal, not what he would want. it is fascinating. he has no dog in the fight. he is just a spectator, but his staras a spectator is that wars probably has a better slate here than icahn. alix: the other story has to do with blankfein having a wonderful meeting. this has to be my favorite story. mr. blankfein is sitting down for lunch, talking about the how it encompassed both firms and how they go forward. >> they both stood their ground, by the sound of it. this is one of these gifts that keeps giving. yet than 300 of market cap, it seems to involve some of the biggest companies on wall street. so blackstone did this very smart, with slightly questionable trade, where they defaulted on some of its bonds, but they held the cds. they were refinancing. goldman, on the other side of some of those contracts, are unhappy understandably because they are on the hook for a lot of money. apparently this was something discussed at the lunch between jo

. >>> shedding light on the difficulties that one time star hedge fund manager bill ackman is facing.avid joins us from new york city good to have you on the show. >> thanks for having me scott. >> you write about a guy that's morphing into something far different than a few years ago. >> yeah, that's what is going on right now. he had some huge highs and he has had a bad run of three years. his investors seem to be heading to the exits pretty rapidly. >> how would you characterize the level of redemption that you say they're seeing >> sure. my understanding is only an 8th of capital could be redeemed by investors so he has some time but 2-thirds of what can be redeemed is being pulled and that's unsustainable for anyone. >> do we think it's a new phenomenon you mentioned the troubles have obviously gone on for the last few years. you know, there could be two different categories his high network investors or longer term investors could be sticking with him while some of the new institutional money could be the ones that are mostly responsible for pulling their money. >> correct for s

probably some vindication here for bill ackman of pershing square. 10%.irm does own doing very well todayalexi and pharmaceuticals suggesting there is continued growth ahead. doing very well today. alexi andanalysts are saying tho do with the study on a rare blood disease coming through. suggesting that perhaps the aftermarket for cars is coming back into play and those shares rallying today. up against amazon as well. from public markets to private last year drew record investment in private equities. the potential effect of higher interest rates. joining us now is david taylor .- david tyer -- david tej think you for coming. talk to me about where we are in this private equity cycle. last year was such a big year. what happens now? >> i think we are late in the cycle. it is hard to look at it any other way. for us in the private markets we are always looking for individual companies to buy in the market is so large and for us there is a way specific opportunities in the way we think about things is to imply -- apply the macro environment to the situation we are looking at. you do use le

over the short position in herbal life. >> ackman has one of the worst reputations on wall street, andrbal life that's a classic kplam example of what he does. he's the cry baby of the schoolyard >> the guy is road kill on the hedge fund highway, i never have to worry about him again, doesn't have the resources to sue me, not an honst guy or keeps his word and taking advantage of the little people >> you couldn't pay me to do it. >> is not used to anyone standing up to hem after this, he said, he literally said, bill, we can be friends now. i said, carl, you are no friend of mine, and that was it >> i never said i wanted to be friends with you, bill i wouldn't be friends with - >> okay, carl. >> you said you'd like to be friends to invest together >> carl, i have -- you think i want to invest with you? >> i'd wouldn't invest with you if you were the last man on earth. >> remember that >> when the wolves bite, two billionaires, one company, one battle breaking down the showdown between the investors when is it officially out, tomorrow >> publishes tomorrow. >> what's it feel like to loo

in the city's inland harbor ackman from turkey installed an underwater bridge. and on the promenade a fountain with plaster and bronze figures by nicole eisenman from new york. the works were placed all over the city and not always easy to find in a dark tunnel thermal electric chandelier. from braman. and in a derelict cemetery cameroonian artist and a human being installed his celestial mask. this sort of vent has been mounted in minster every ten years since nine hundred seventy seven and some works even get to stay when it's over. my final stop today is the crew for to take a lively quarter popular with students i'm going to pop into a quaint traditional restaurant called. regulars can store their personal beer steins by the bar by the way organic beer has been brewed years since one thousand nine hundred seventy eight just the place to reflect on my day and when stuff. is somehow both historical and innovative i was able to travel far back in history experience crazy art and get to know some great ideas about the climate protection and the beer is delicious

the fact that ackman knocked the stock down so much they had a long simmering feud for a decade theyused the battle and the brawl that unfolded on our air on january 25th, 2013. >> have you heard from these guys yet >> little bit. >> a little bit? >> they haven't seen the book yet. >> so we don't know -- and who do you think comes out we know who comes out the winner, right? by default carl is the winner. >> history is history. you can't rewrite the story with a different ending the story has somewhat ended the way it has you know, bill recently got out of the position completely carl walked away carl's still in the stock best i know and he's made $1.2 billion on this particular investment >> and what's their relationship like now >> it's probably better than it's ever been give or take a few hiccups along the way. but they spoke -- you're referring to remarks bill made at the active passive event last week bill called carl after that and tried to sort of smooth things over and tried to make it clear that he didn't mean anything derogatory >> he swings for the fences. he's, like, sha

expanding our margin, and i'm excited about he sees the same opportunity that i see >> reporter: ackman floated the idea of moving into breakfast making breakfast and said they will experiment with items on the menu, no commitments to move into breakfast soon, but customers would have access to food earlier in the day, guys, but he wouldn't say, you know, never say never about a potential breakfast burrito, but we don't know if or when that happens. back to you. >> great work in the middle of the kitchen, not being distracted we have to say earlier in the week and last week, earnings season was not delivering the share price performance, but they put that to bed today great share price. >> impressive that they have so big and facebook up 10%. >>> all right. just under 50 minutes before the close, and because of facebook's moves, tech is the clear outperforming today, and the nasdaq is up nearly 2%, but the dow and s&p both up more than 1% themselves >>> "closing bell" is just getting started. >>> next, the ceo of dunkin donuts responds to the position against his stock. >> same store sa

capital investing with pershing square, we are also talking about less than 50% of the money bill ackmaneas and the pershing square vehicles. let me because -- let me be clear, that is the publicly traded vehicle. but we are talking are the private funds, and the private funds have a $3.5 billion of outside capital and 500 plus million of bills capital. bills capital is going nowhere, so we are about three and a quarter billion dollars, of which only 1/8 can leave. vonnie: and when we look at this performance, we knew about herbalife and valiant, this quarter had not been as bad for new investments. erik: that is true. furthermore i should add the money walking out of the door and the person i spoke with was close to pershing square and is familiar with the weibo is thinking -- the way bill is thinking. this is subject to change. investors weapon with pershing square for the shortest period for example,kstone the long-term investors and high net individuals who were there making lots of money, they are staying put. 18 of that three and a quarter billion dollars, it would take two or thre

our producer reminds us, ackman shorted mbia that idea was also unveiled at the sohm conference many years ago. this is interest. >> one of david's greatest picks was allied capital years and years ago. he wrote that book on fooling all the people, something like that. these very tricky ones, i don't know what to make of it. he's a really smart guy. i would not bet against him. >> yeah. >> pretty significant move, this was a $45 stock in the summer. it's 35 now. i don't think mr. einhorn is looking for a move to $30. he's clearly looking for something bigger than that very tough to play the short game as many of the folks know, but it's something to watch for sure it trades down to 30. >>> another hot topic at the sohm conference was bitcoin. john pfeffer joining us. you want to go right to what you were predicting at the conference and that is that bitcoin rise to no less than 90,000 and potentially as high as 700,000 what sort of time frame are you looking for and can you lay out the case for the bear case i guess if you want to call it that for 90,000 and the bull case which is 70

. >> i think we'll see the big idea coming out from bill ackman he's not going anywhere and we talk abouture in my book as well and you will find many conversations for this book is interesting about where he sees himself and where he's come from >> what was fascinating is that when you told me, told us how candid he and carl were, that's going to make some phenomenal reading. >> and herbal life was, too. you will hear a side from him that you have not heard before >> let's talk about this gundlach thing more importantly before we go long xop >> is it a short dollar p tretr? >> he's been spot on in terms of commodity and year to date i am confused by the short facebook but we'll hear more from jeffery of the reasons behind it. he's pretty accurate >> less than ten seconds you got a final trade name >> i am still with j. pchp. mor. >> that does it for us, "power lunch" starts now. >> good afternoon everybody, i am tyler mathisen, it is all about life at 3% yields on the benchmark and ten yr note hitting the key psy psychological marker we'll tell you what it could mean for you and your mon

list >> the canadian railway was a good one for him >> nonetheless, we will keep an eye on billing ackmanl t weekly jobless claims and if february trade deficit both will come at 8:30 in the morning, all those as a prelude to the jobs report >> let's talk about a few stocks on to move this morning. jm smucker is aiming to buy ainsworth pet nutrition, they're behind rave etch ray's new trish. they are reporting a baking business, pilsbury they say they are fought deciding on whether am gone whens a press contract sarah huckaby sanders says e says they are not trying to choose a role. they a they competing with oracle and amazon for that deal >> he says who are you thinking about? >> what do you think, mr. president, what should i do? president trump goes, i don't know, what do you think? that's all >> this goes back to at&t deal or anything else right? >> how many times? >> i know what to do, microsoft is looking good. who was the other? oracle, great company, great product. >> a problem with things going p public >> shocks making a monster comeback they're up this morning. futures pointin

. >> to me it seemed like ackman so bent on destroying will go to any length.needed some government agency to shut it down and he failed. >> he had to have that. the entire thesis was predicated on the fact that the government needs to intervene and shut the company down. there are a couple of issues with that. is the government going to act on behalf of a billionaire in new york city telling it to shut the business down? the ftc in the end came out and smacked herbal life pretty good, fined it and made it change the way they do part of their business. they did not shut herbal life down. >> i loved it. it's a quick, reads like a novel. it is a novel. i cannot believe these guys. great job. i love it. >> good luck, scott. >>> up next stop trading with jim. ten year note yield 2.998. we did hit 3.01% roughly. we are back after this. so, my portfolio did pretty well last year. that's great. but the market was up nearly twice as much. that's a tough pill to swallow. exactly. so i started trading. but with everything out there, how do you know what to buy? well, i t

you can see they're working very hard he did confirm he had a meeting with bill ackman they discussed breakfast they are interested in extending hours. they didn't commit to the breakfast burrito anytime soon. >> i love a good breakfast burri burrito, i'm hopeful. >>> will they be the stock that p propels one of the teams to win at the cnbc stock draft? it's one of the 60 stocks contestants can choose from. will they? we'll find out today at 2:00 p.m don't move >>> sticking with food, jim chanos revealing restaurant and du dunkin brands. restaurants have struggling. he adds that in both the cases there's a battle of the franchisers versus the franchisees. here's what he said to say about do dunkin. >> it's as low as 2% returns this is not an economic deal for their expansion. this gets back to the heart of the problem. the boxes by and large, as more and more of these franchisers grow by increasing units, if they're not same store sales, as we saw this morning, they aren't growing. >> stocks are down this year dunkin reporting results this morning, missing on revenue. >> see that? >>>

we'll see them later, the collision of bill ackman and carl icahn, congratulations, scot, book drops today >> already no. 1 in its category thank you for watching "power lunch. >> "closing bell" starts right now. >>> dow down more than 490 points, session lows, bringing it down more than 1% >> final hour of trading, anything can happen. welcome. i'm kelly evans at the new york stock exchange you're watching the "closing bell." >> before we get to the big stories, was it a cake party or alcohol party, which would you rather >> cake perioarty >> i'm generally torn, but big congrats for scott anyway, first, rates, the 10-year, touching 3% for the first time since january 2014. >> finally happened this morning. a kiss off it right now. fang stocks pressure the market secondly declines from 3.5% for amazon and 5% for alphabet. let's get to our reporters covering the action now. we are watching the move in rates, and bertha has the nasdaq names like caterpillar are driving the selloff. >> it's the debate about peak earnings people feel it's too early, but caterpillar threw fuel on the fire

we'll see them later, the collision of bill ackman and carl icahn, congratulations, scot, book dropsts category thank you for watching "power lunch. >> "closing bell" starts right now. >>> dow down more than 490 points, session lows, bringing it down more than 1% >> final hour of trading, anything can happen. welcome. i'm kelly evans at the new york stock exchange you're watching the "closing bell." >> before we get to the big stories, was it a cake party or alcohol party, w w

it is about the activist investor bill ackman. he runs a big fund.lion in it and he makes invests out of that fund. he is losing investors. they are taking money out. ashley: his private hedge fund. why? she years of subpar performance. investors pulling cash out as you say, stuart, a fast rate. blackstone which has been a big backer of this fund taking cash out. jpmorgan chase no longer recommending fund. he made a big bet on valeant pharmaceuticals, bet 4 billion and lost. big battle with herbalife saying it will go to zero, never did. cost him a billion dollars. these are big hits, people taking money out at pretty fast rate. it hurts. stuart: does indeed. thank you very much. >>> google employees are trying to stop the company from making software for military drones. google employees don't like that involvement. i find that incredible quite frankly. we have the story for you. >>> nigel farage on the road with former mexican president vicente fox debating nationalism. nigel will tell us what that is all about after this. ♪ ♪ ashley: in the last h