Icahn and Ackman spar over Herbalife A long-simmering feud between two of the biggest stars of the hedge fund world burst into public view on Friday as Carl Icahn and Bill Ackman traded insults and bitter recollections over half an hour of live television. Mr Ackman was a "crybaby," said the veteran corporate raider, while the younger activist investor said Mr Icahn "is a bully." The CNBC interview was sparked by Mr Ackman's recent attack on Herbalife, which he has called a fraudulent pyramid scheme as part of a billion-dollar bet against the value of the nutritional supplement direct seller. Reports this month suggested Mr Icahn bought Herbalife stock as it recovered from a 39 per cent drop that followed the publication of Mr Ackman's research in December. While deflecting questions about his stock holdings this week Mr Icahn had voiced his opinion of his rival, setting off the argument. Both men accused the other of lies, distortions and a lack of integrity. Turning to Herbalife - which denies the accusations and has said it is a legitimate business - Mr Icahn said Mr Ackman's Pershing Square manipulated its stock and its investors were at risk of being "caught in the mother of all short squeezes," particularly were someone to buy the company outright. The billionaire investors fell out over the relatively minor sum of $4.5m relating to a 2003 business deal, which required a seven-year court battle to force Mr Icahn to pay the sum, plus interest, to Mr Ackman's investors. Recalling when he first met the younger man a decade ago, 76-year-old Mr Icahn said: "I went to a tough school in Queens and they used to beat up the little Jewish boys and he was like one of these little Jewish boys crying that the world was taking advantage." Mr Ackman said that when the dispute arose he was winding down his previous hedge fund, Gotham Partners, which was involved in a high-profile short selling campaign against MBIA, a bond insurer, and was under investigation by the New York attorney-general. "Carl thought: "this guy is road kill on the hedge fund highway, I'm never going to pay him,"" Mr Ackman said. MBIA later collapsed, the inquiry was concluded without consequence, and Mr Ackman went on to launch Pershing Square, his current $12bn hedge fund. Mr Ackman invited his opponent to bid for Herbalife, and said that Mr Icahn was in fact attempting to orchestrate a short squeeze, where an investor is forced out of a short position by rising losses. He also said that Mr Icahn had likely bought Herbalife and quickly sold it on at a profit, offering "congratulations on a good trade." Mr Icahn again declined to comment on his stock holdings. Shares in Herbalife nudged up to close at $43.59 in New York.