Still No Herbalife In 13F ETFs

Includes: ALFA, GURU, HLF
by: Benzinga

By: The ETF Professor

Despite all the acrimony and controversy surrounding Herbalife (NYSE:HLF), the stock Pershing Square Capital Founder Bill Ackman is short (and rival Carl Icahn is long), shares of the multi-level marketer are not significant components in ETFs.

In theory, it would seem Herbalife would make for a potential addition to two ETFs designed to give investors exposure to to stocks that frequently appear in hedge fund 13F filings. That has not been the case.

The AlphaClone Alternative Alpha ETF (NYSEARCA:ALFA) recently rebalanced its lineup and Herbalife is nowhere to be found.

ALFA tracks the AlphaClone Hedge Fund Long/Short Index, which "uses AlphaClone's proprietary "Clone Score" methodology to aggregate on a quarterly basis the ideas of hedge funds for which historically it has made the most sense to follow based on their disclosures. The index also employs a hedge mechanism that allows the index to vary from being long only to market hedged," according to the ETF's fact sheet.

Apple (NASDAQ:AAPL), News Corp. (NASDAQ:NWSA), American International Group (NYSE:AIG) and Google (NASDAQ:GOOG) are among ALFA's top holdings. The fund holds more than 75 stocks.

The rival Global X Top Guru Holdings Index ETF (NYSEARCA:GURU) has not made room for Herbalife, either. At least not yet. GURU tracks the Top Guru Holdings Index, which "is comprised of the top U.S. listed equity positions reported on Form 13F by a select group of entities that Structured Solutions AG characterizes as hedge funds," according to Global X.

Home to over 50 stocks, GURU's top holdings include Allscripts Healthcare Solutions (NASDAQ:MDRX), Crown Castle (NYSE:CCI) and Dow component Merck (NYSE:MRK).

Interestingly, Herbalife was not among the five most purchased stocks by hedge funds in the fourth quarter. That group is comprised of Kraft (KRFT), ADT (NYSE:ADT), Realogy Holdings (NYSE:RLGY), Workday (NYSE:WDAY) and Facebook (NASDAQ:FB), according to AlphaClone data.

Apple and Google were among the five most sold stocks by hedge funds in the fourth quarter the AlphaClone data show.

For more on ETFs, click here.

Disclaimer: Neither Benzinga nor its staff recommend that you buy, sell, or hold any security. We do not offer investment advice, personalized or otherwise. Benzinga recommends that you conduct your own due diligence and consult a certified financial professional for personalized advice about your financial situation.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.

About this article:

Tagged: , , SA Submit
Problem with this article? Please tell us. Disagree with this article? .