A Wall Street Genius’s Final Investment Playbook

Ha Si-heon’s short-selling declaration swept through the financial world like a typhoon.

Not only economic channels like CNBC, but even general news broadcasts delivered the shocking news as breaking stories.

[In the past 30 years, only three people have shorted more than a billion dollars! George Soros, who brought the Bank of England to its knees in 1992; Michael Burry, who predicted the 2008 subprime mortgage crisis; and William Ackman, who targeted Herbalife in 2012!]

Excitement was evident in the expert's voice on the screen.

[But now! A fledgling fund, established just six months ago, has joined this legendary group! An utterly unexpected and shocking development!]

Ha Si-heon.

A rookie who had just begun making a name for himself on Wall Street was now standing shoulder to shoulder with legends after a single declaration.

Exclamations of “He’s crazy!” echoed between Wall Street’s glass towers.

No one could have imagined such a dramatic turn of events.

[Could you briefly explain for viewers who may not be familiar with short selling?]

[Of course. Short selling is an investment strategy where you borrow shares and sell them, then buy them back at a lower price when the stock drops to pocket the difference. It's commonly referred to as shorting.]

[So… it’s a technique used when you’re confident the stock will drop?]

[Exactly. But short selling is fundamentally different from regular investing. This isn’t just an investment—it’s a zero-sum game with clear winners and losers! A stock either rises or falls! There’s no draw, only a decisive outcome.]

Perhaps overwhelmed by the excitement, the expert choked momentarily and drank some water before continuing.

[If Valeant’s stock rises, Ha Si-heon loses. If it crashes, Valeant collapses. One side must be completely destroyed for the game to end!]

[It’s a real duel, then.]

[Precisely! And the reason this short sale is attracting so much attention isn’t just the scale. More important is the fact that Ha Si-heon made a public declaration. It’s a blatant provocation—a declaration of war against Valeant! Just like George Soros challenging the Bank of England in 1992!]

Ha Si-heon’s actions reminded the world of legendary moments that once shook global financial markets.

[Back then, Soros predicted a sharp fall in the British pound and launched a massive short attack. He even publicized the plan, drawing in other hedge funds. Eventually, their combined force deployed capital far exceeding the Bank of England’s reserves and attacked the pound. As a result, the UK was forced to exit the European Exchange Rate Mechanism. Soros made a billion dollars overnight, but more importantly, he proved that a single investor could bring down an entire national economy. Ha Si-heon is now trying to apply that same strategy to Valeant!]

Public short-selling was a unique form of warfare.

Once both generals presented their justifications,

All the watching soldiers chose a side and lined up behind them.

Victory would go to the side with the most firepower and allies.

The two generals in this battle were none other than Ha Si-heon and Ackman.

And the soldiers watching this duel were all of Wall Street.

[The real war begins now! Ha Si-heon is going to expose Valeant’s fatal weaknesses, one by one. On the other side, Ackman and Valeant will mobilize every dollar and connection they have to protect the stock! The outcome depends on who can rally stronger allies!]

***

Meanwhile, in the Maverick Investment conference room, Ackman stared blankly at the table and muttered.

“I never thought he’d declare a short sale…”

He had simulated dozens of scenarios in his head, but he never expected this choice.

Making a public short-sale declaration wasn’t something you could do with guts alone.

Even well-established funds with solid reputations hesitated to take that route…

“What a ballsy guy.”

In front of the world, Ha Si-heon had declared a battle that would end only when one person fell—against the almighty Ackman.

Though he was a rising star, Ha Si-heon’s reputation preceded him, but calling this reckless was an understatement.

It was madness.

At first glance, it looked like Ha Si-heon didn’t stand a chance.

But when facing such an unpredictable opponent, lowering one’s guard was dangerous.

The first priority was to assess the situation.

“How’s the market reacting?”

“Valeant’s stock dropped 8% immediately after Ha Si-heon’s declaration, but things have stabilized since. While put option volume has increased, most of it seems to be precautionary.”

“What about the short sellers?”

“No major movements yet. Ha Si-heon hasn’t revealed any detailed plans, so most are waiting to see what happens.”

To rally support in a short-selling war, one needed a cause.

Ha Si-heon hadn’t revealed his justification yet.

Once he did, the real moves would begin.

“What should we do?”

Ha Si-heon had made the first move.

Now it was Ackman’s turn to respond.

After closing his eyes in thought, Ackman finally spoke.

“There’s nothing wrong with Valeant.”

Ackman held a significant stake in Valeant and had personally analyzed the company.

There was nothing wrong with the business itself.

If the stock price fell, it would be because Ha Si-heon actively tried to drive it down.

“He’ll probably claim ‘price gouging’ as his cause. He’ll use his public image to blow up the issue and drag down the stock. But… it won’t work.”

Ackman was confident.

He believed Ha Si-heon could never win the battle of justifications.

“He’s still fixated on ethics instead of profitability. That appeals to public opinion, not shareholders. Sure, he’s stirred up media attention before… but short-sellers won’t move just because of his words.”

To succeed in a public short sale, one had to rally a ‘short’ force.

But hedge funds interested in shorting rarely cared about ethics.

They only cared about one thing.

Money.

And for those funds, saying “drug prices are unfair” wouldn’t carry much weight.

However—

“He’s not stupid. He must know this short is doomed to fail.”

“You’re saying he knows it’ll fail, but he went ahead anyway? Why…?”

“Because even just raising the issue would’ve already increased Valeant’s stock volatility.”

The mere emergence of controversy causes stock prices to sway.

And Ha Si-heon was clearly targeting that effect.

Destabilizing Valeant’s stock.

So his real goal was clear.

“He’s not actually after Valeant. It’s Allergan. What he’s desperately trying to stop is the tender offer.”

Ackman’s tender offer proposed a stock swap between Allergan and Valeant.

One Allergan share for 0.83 Valeant shares.

But if Ha Si-heon publicly claimed that Valeant stock was worthless, shareholders would likely reject the offer.

“If the stock becomes too volatile, institutions will naturally avoid the tender offer out of caution. That’s what he’s aiming for.”

No one wants to hold unpredictable stock.

Ha Si-heon’s strategy was to exploit that.

Ackman’s course of action was therefore clear.

“Revise the tender offer. Increase the cash portion.”

Compared to volatile stock, cold hard cash could alleviate fears.

After deeper thought, Ackman spoke again.

“And extend the tender deadline to 50 days.”

“50 days?”

“That should be enough.”

He set a new tender deadline of 50 days.

He intended to end it within that time.

“I’ll settle this controversy within 50 days.”

He was confident.

At least in a persuasion war targeting institutional investors, he would not lose.

***

<Valeant Revises Tender Offer…>

Valeant submitted a revised proposal with a higher cash payout ratio.

It was an attempt to reassure Allergan shareholders.

To show that the current controversy was temporary and that Valeant’s management capabilities remained solid.

But the very next day,

Ha Si-heon’s public presentation began.

[Valeant has grown through an unethical business model.]

The declaration of a short-selling war had already been made.

Now it was time for ‘General’ Ha Si-heon to present why Valeant’s stock price was bound to fall.

His goal was to give market participants a justification to take short positions.

Ha Si-heon began his explanation by focusing on ethics.

[Here are the price increases of the drugs Valeant acquired over the past five years: 330%, 3,000%, 150%, 1,700%, 700%, 500%… Especially for rare disease treatments or essential medicines with no alternatives, the price hikes were brutal.]

However, this alone wasn’t enough to convince Wall Street's soldiers.

To prompt them to join the short side, they needed a direct trigger for the stock to fall.

[Such a predatory profit structure could only persist because it was hidden. But now that the truth is out, it won’t escape harsh market and government sanctions.]

A stock plunge was only a matter of time.

Ha Si-heon presented two grounds.

[First, consumers already know the truth and have started a boycott. Many of Valeant’s products are OTC—over-the-counter—so they are particularly vulnerable to consumer withdrawal. The boycott will strike revenue directly.]

One was revenue loss from the boycott.

Many of Valeant’s products—cold medicine, acne treatments, and Bausch & Lomb contact lenses—were especially susceptible to such action.

[Second, the beginning of regulation. This is a time when the political world is abuzz with the Patient Protection and Affordable Care Act proposed by the president to reduce medical costs.]

The second was government regulation.

[Under the current administration, which prioritizes reducing healthcare costs for citizens, Valeant’s exploitative practices have been exposed. Regulatory scrutiny is inevitable. We will request a full investigation into Valeant from the FTC, DOJ, and Congressional Oversight Committee.]

These were practices the government had overlooked because they were unknown.

But now, with the nation’s attention drawn by this massive short sale, regulatory authorities were bound to act—Ha Si-heon warned.

Meanwhile, watching the webcast from his office, Ackman’s brows subtly furrowed.

‘This is…’

At that moment, Ha Si-heon’s presentation felt oddly familiar to him.

Because it closely resembled the strategy Ackman himself had used against Herbalife in the past.

Back then, Ackman declared a billion-dollar short position and exposed Herbalife’s pyramid scheme structure, raising ethical concerns.

He had predicted that consumer backlash and government regulation would send the stock plummeting.

‘Is this just a coincidence…?’

It was unsettling, but in the grand scheme of the war, it was a minor detail.

Ackman decided to set aside his emotions and calmly observe the market’s reaction.

And two days later—

“What’s the response?”

“The stock has plunged 18%.”

A significant drop.

It clearly showed how much the controversy around Valeant had negatively impacted market sentiment.

“The biggest hit seems to come from ESG funds selling off their holdings.”

For ESG funds—those focused on Environment, Social, and Governance—Valeant was no longer an attractive investment.

A shadow fell across Ackman’s face.

As of 2014, ESG funds had rapidly risen to account for 17% of total assets under management in the market.

However—

“They were bound to leave anyway.”

For those who prioritized corporate social responsibility, pulling out was a natural step.

This was a blow he had expected.

What truly mattered was the remaining 83%.

He had to persuade them.

“What about the movements of the short sellers?”

“Current short interest is at 12.8%, and trading volume is about 20%. For now, it appears that small institutions and individual investors are entering in an exploratory phase. Major funds and leading players still seem to be on the sidelines.”

The PM’s report didn’t stray far from Ackman’s expectations.

Ha Si-heon’s influence wasn’t yet strong enough to move major capital.

However—

“But…”

The analyst next to the PM hesitated, his voice trailing off.

Hesitation was written all over his face.

“What is it?”

“It might be nothing. But… we’ve noticed some strange movements. I’m not even sure if it’s worth mentioning…”

“Speak.”

“We’re seeing unusual activity among retail investors.”

“Retail investors?”

Ackman’s brows furrowed slightly.

Retail investors made up about 20% of the market, but in large-scale short-selling battles like this, they were typically not worth paying attention to.

The reason was clear.

They lacked access to information, financial power, and trading infrastructure compared to institutional investors.

Most of them simply relied on buying and holding, and complex trades like short selling were generally out of reach for them.

So why were retail investors suddenly part of this?

“Recently on social media, messages urging people to join Ha Si-heon’s short sale alongside the Valeant boycott have been spreading rapidly. Also, simplified guides to options trading are quickly going viral from various brokerage platforms…”

The analyst summarized everything in one sentence.

Retail investors were banding together to join the short-selling front.

“…”

Ackman was speechless for a moment.

This was a completely new variable that no one had seen coming.