Capital Research ups Herbalife stake to 10.1%


Mutual fund giant Capital Research now owns 10.1% of Herbalife (NYSE:HLF), up from the 7.6% it owned as of March 30. (13G)

Capital Research is Herbalife's 3rd-biggest shareholder, after Carl Icahn and Fidelity.

Shares +0.8% AH.

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Comments (40)
  • alfanando
    , contributor
    Comments (273) | Send Message
     
    Can you feel where are we Going? Oh Yesss
    Still cheap! Cheap ! Cheap! get in the Ship!Ship! Ship!
    8 Aug 2014, 06:44 PM Reply Like
  • Jeffjacobjames
    , contributor
    Comments (1141) | Send Message
     
    BOOYAH!
    8 Aug 2014, 06:45 PM Reply Like
  • CrimeBustersNow
    , contributor
    Comments (2546) | Send Message
     
    alfanando

     

    Comments (58)

     

    Can you feel where are we Going? Oh Yesss
    Still cheap! Cheap ! Cheap! get in the Ship!Ship! Ship!
    ~~~~~~~~~~~~~~~
    I hope the authorities also understand where you are going.
    9 Aug 2014, 01:53 AM Reply Like
  • PChan444
    , contributor
    Comments (514) | Send Message
     
    Chan formally accuses david john Thornton of being a fraud
    10 Aug 2014, 12:23 AM Reply Like
  • ForTheTruth
    , contributor
    Comments (906) | Send Message
     
    Way oversold. Strong buy!
    10 Aug 2014, 03:27 PM Reply Like
  • ben_nimaj
    , contributor
    Comments (1852) | Send Message
     
    PChan444,

     

    You wrote: >>>>
    Chan formally accuses david john Thornton of being a fraud
    <<<<

     

    You left out the word "insidious" ... and it should be noted that you've NEVER been proven wrong in calling someone out as a fraud ... batting 1000
    11 Aug 2014, 12:58 PM Reply Like
  • WealthMaster
    , contributor
    Comments (1640) | Send Message
     
    I knew he was a fraud from the first time I read one of his ridiculous posts and his claims of batting 1000 and never lost a case. I bet he records his losses with invisible ink.
    12 Aug 2014, 02:09 AM Reply Like
  • WealthMaster
    , contributor
    Comments (1640) | Send Message
     
    alfanado,

     

    Great call! Nice bounce today. Another run started. Could exceed the buyback.

     

    M.O.A.S.S in action
    12 Aug 2014, 02:13 AM Reply Like
  • WealthMaster
    , contributor
    Comments (1640) | Send Message
     
    PChan444,

     

    I agree with you. He is a fraud.
    12 Aug 2014, 02:13 AM Reply Like
  • Truthfirst
    , contributor
    Comments (599) | Send Message
     
    This is only the beginning

     

    Capitols position makes total sense, specially with its relationship to Temasek

     

    Capitol is one of the worlds largest investment firms managing aroung 1 trillion dollars, Ackman manages (or used to) about 12 billion

     

    Now Ackman faces Icahn, Soros, Stiritiz, Capitol, FMR, BPH, Perry. And this small number have majority control of shares equaling about 65%.

     

    Ackman against the biggest and the best in the world.
    8 Aug 2014, 06:44 PM Reply Like
  • Energysystems
    , contributor
    Comments (2038) | Send Message
     
    The funny part, is that $HLF is down over 30% ytd. So much for betting against the biggest and best in the world.
    8 Aug 2014, 09:08 PM Reply Like
  • ForTheTruth
    , contributor
    Comments (906) | Send Message
     
    Truthfirst,

     

    And let's not forget the 7.500+ Herbalife employees who contribute regularly to HLF via their retirement accounts and about 3 million distirbutors.
    10 Aug 2014, 03:29 PM Reply Like
  • Truthfirst
    , contributor
    Comments (599) | Send Message
     
    that is why you invest in it
    11 Aug 2014, 09:28 PM Reply Like
  • jperello001
    , contributor
    Comments (118) | Send Message
     
    I will make a bet that Capital Research Group is smarter than 99.9% of contributors/posters on Seeking Alpha. I have no dog in the hunt, but I feel much better about HLF and am thinking of getting long.
    8 Aug 2014, 07:29 PM Reply Like
  • CrimeBustersNow
    , contributor
    Comments (2546) | Send Message
     
    I will make a bet that Capital Research Group is smarter than 99.9% of contributors/posters on Seeking Alpha. I have no dog in the hunt, but I feel much better about HLF and am thinking of getting long.
    ~~~~~~~~~~~~
    I am willing to bet they are as dumb or dumber than those who invested in Enron etc.

     

    Remember we have never been proven wrong calling out fraud.
    9 Aug 2014, 01:53 AM Reply Like
  • jperello001
    , contributor
    Comments (118) | Send Message
     
    Funny you mention Enron. Capital Research brags about how they never invested in Enron due to thier due dilegence. These guys just do not follow the heard. I guess time will tell who is right or wrong.

     

    Cheers
    9 Aug 2014, 10:11 AM Reply Like
  • briian865
    , contributor
    Comments (1356) | Send Message
     
    Hey CBN-and you haven't been proven right that HLF is a fraud.
    9 Aug 2014, 12:36 PM Reply Like
  • PChan444
    , contributor
    Comments (514) | Send Message
     
    David John Thornton has NEVER been proven right
    10 Aug 2014, 12:23 AM Reply Like
  • ForTheTruth
    , contributor
    Comments (906) | Send Message
     
    I will make a bet that Capital Research Group is smarter than 99.9% of contributors/posters on Seeking Alpha. I have no dog in the hunt, but I feel much better about HLF and am thinking of getting long.
    ~~~~~~~~~~~~
    I am willing to bet they are as dumb or dumber than those who invested in Enron etc.

     

    Remember we have never been proven wrong calling out fraud.

     

    CB,

     

    You keep claiming you are batting 1,000 but at the same time you have never been right yet with Herbalife. Who is keeping score for you, Stevie Wonder???
    10 Aug 2014, 03:30 PM Reply Like
  • WealthMaster
    , contributor
    Comments (1640) | Send Message
     
    PChan444,

     

    he says he is batting 1,000. I wonder if he means he hasn't won any and therefore is batting 1,000 in losses??
    12 Aug 2014, 02:11 AM Reply Like
  • ForTheTruth
    , contributor
    Comments (906) | Send Message
     
    CB, I'll bet that Capital Research is a lot smarter than you and obviously has a much more impressive track record in trading, in fact, I know they do. Isn't that obvious.

     

    And please do not bore us with you're never been wrong and batting 1000, yada, yada, yada ad nauseum. Regarding Herbalife, when have you been right?
    12 Aug 2014, 03:02 AM Reply Like
  • Deja Vu
    , contributor
    Comments (1800) | Send Message
     
    Capitol research desperately propping up the share price to prevent mark to market losses....naturally the stake is going to keep on increasing...
    8 Aug 2014, 08:35 PM Reply Like
  • Patent News
    , contributor
    Comments (1464) | Send Message
     
    desperately? maybe you are the one who is desperate.
    8 Aug 2014, 11:14 PM Reply Like
  • briian865
    , contributor
    Comments (1356) | Send Message
     
    Deja vu- lol yeah CRG runs hundreds of billions of dollars of stocks and yet they're averaging down on their $500 mil HLF position so as to deceive their investors. That has to be one of the dumbest things I've ever read on this board and that's saying something given all of the Matt Stewart and QTR posts.
    9 Aug 2014, 12:39 PM Reply Like
  • ChristopherMoon
    , contributor
    Comments (45) | Send Message
     
    I am pretty sure that CRG has over $1 trillion in assets under management.
    9 Aug 2014, 04:05 PM Reply Like
  • Deja Vu
    , contributor
    Comments (1800) | Send Message
     
    Unfortunately commenters here display a lack of understanding of funds work.

     

    They may have 1 trillion in AUM but not all investment decisions are taken by one omniscient being.

     

    The aum is broken into chunks managed by individual fund managers who pick individual investments. These fund managers are judged on individual and relative performance for the chunks they manage.

     

    In this case some over enthusiastic manager, who manages a slice of the CRG AUM and went long on a outsize chunk of HLF, is on the hook for large losses relative to small slice of the CRG pie he manages, (even if it is insignificant for CRG as a whole) and hence whoever made the HLF pick is going to have a super bad quarter unless s/he props up the price.
    9 Aug 2014, 05:55 PM Reply Like
  • Patent News
    , contributor
    Comments (1464) | Send Message
     
    i am sure the bears and bashers are much much smarter than george soros and carl icahn?
    9 Aug 2014, 12:34 AM Reply Like
  • Count It
    , contributor
    Comment (1) | Send Message
     
    Hi Matt and Raven

     

    First time poster but long time admirer of your creative articles. Should I stick with Mr William Ackman and you fella's or should I just take my loss? Please advise
    9 Aug 2014, 01:50 AM Reply Like
  • WealthMaster
    , contributor
    Comments (1640) | Send Message
     
    Oh yes. Capital Research has now increased their stake. As some of us have been saying all along, follow the leaders, the successful like Icahn, Soros, Fidelity, Capital etc. These guys do their research. More bad news for the shorts and Ackman shills.
    9 Aug 2014, 02:52 AM Reply Like
  • Ted Bear
    , contributor
    Comments (696) | Send Message
     
    Just a little insight into how these things go down.....
    Short analysts, just like street side/long analysts, make "calls", especially to long holders of shares which the shorts dislike. The analysts make their case as to why the position should be sold.
    Let's just say the callers can be "tenacious".
    After hundreds of calls, and that less than stellar presentation Ackman made a couple weeks back, the longs get annoyed.
    Let's also note that the longs aren't stupid either, and they might agree that the underlying shares are not a great investment, but great short plays have a life of their own--one of which is that they squeeze remarkably higher before they flop over dead if the analysis is accurate.
    So Capital is annoyed from the calls, "knows" the shares will structurally move higher, and they buy more.
    I don't know if Ackmans analysis on this stock is any good or not. I also would guess that he is not actually "short" too any shares, but has structured agreements with the street which allow him to benefit if the shares go down.
    So we wait. The longs can't sell without setting off an avalanche, and Ackman can't raid the stock. You can't take the company private because nobody will finance a MLM scheme (remember AVP?), so the only thing left is time, and a catalyst which is unknown at present.
    So, put it on the back burner and let it simmer. That's all there is to be done at this point. If it is what it is, the thing will fall over. If not, ten years from now we will still be having this conversation. I have been involved in some that went to zero; and others which are somehow still standing after a decade.
    One thing for sure: this is a big boys game and the little folks (both long and short) will be long crushed before the thing runs it's cycle.
    9 Aug 2014, 08:05 AM Reply Like
  • Ed Shamoon
    , contributor
    Comments (4) | Send Message
     
    With some HLF insiders and now Capital Research buying at these bargain basement levels (as John Templeton said: "when there's blood in the streets"), I hope that this will be the beginning of a nice long run into triple digits! With all these regulators and agencies investigating HLF all this time, how is it that none of them has said anything that would indicate any wrong doing, illegal practices, etc. on the part of this longstanding company? It will be a great day in this long running saga when they finally complete this (NYSE:H)ackman inspired fool's errand and exonerate HLF of his ridiculous, greed motivated allegations.
    9 Aug 2014, 11:36 AM Reply Like
  • possum46
    , contributor
    Comments (6) | Send Message
     
    Bill Ackman's a proven winner on the short side. Usually he is a loner. Where else in the world can HLF go after Cambodia n Subsaharan Africa? That's the ultimate question if you think seriously. The law of large numbers has caught up with HLF.
    9 Aug 2014, 04:29 PM Reply Like
  • john j
    , contributor
    Comments (10) | Send Message
     
    There is a very old book out there...."A Fool and His Money"........anybody who trades on what Mr Ackman or Mr Icanh, or what some fund is doing.....is putting himself at great risk. This is a serious business, if the above reasons are why you are trading this or any particular position, you are at great risk.......
    9 Aug 2014, 05:01 PM Reply Like
  • ForTheTruth
    , contributor
    Comments (906) | Send Message
     
    John,

     

    Some of us have been saying this all along. Everyone needs to do their own DD and not listen to anyone, particularly Ackman who is totally clueless. Know why you are trading HLF. Do your DD. Then buy or sell based on t/a, fundamentals and facts, not fantasy and hype.
    10 Aug 2014, 03:32 PM Reply Like
  • john j
    , contributor
    Comments (10) | Send Message
     
    Implications as to whom is clueless or who is a market master is totally irrelevant. Personally I feel any Mutual Fund Manager who would invest in an equity that has such high risk puts his clients at great risk and also exposes his fund to possibility of litigation from investors. Would you like your 401K or retirement assets invested in a company that faces the possibility of being a ponzi scheme, fraudulent accounting, etc? Upside is in my opinion limited to being just being another supplements retailer, with a questionable markeeting plan. Having said this, I simply see too much downside risk involved in investing in this particular equity from the long side. Again I would advise caution to anyone considering putting their cash to work in HLF...............
    12 Aug 2014, 09:15 AM Reply Like
  • WealthMaster
    , contributor
    Comments (1640) | Send Message
     
    John J writes...

     

    Personally I feel any Mutual Fund Manager who would invest in an equity that has such high risk puts his clients at great risk and also exposes his fund to possibility of litigation from investors.

     

    -----

     

    But notice he says nothing about Ackman taking $1 billion of his investors money and placing it in a very reckless and miscalculated bet. A bet that Ackman is already negative $700 million on.

     

    And then he concludes with...

     

    "Again I would advise caution to anyone considering putting their cash to work in HLF............... "

     

    My response? Advice noted and I have increased my position building and getting ready for a major explosion in HLF stock.
    13 Aug 2014, 01:30 PM Reply Like
  • john j
    , contributor
    Comments (10) | Send Message
     
    Icahn, Ackman are hedge fund managers, they take extremely high risks for accredited only investors. Mutual Funds do not. My personal trading is based on thirty plus years experience, I see nothing but risk trading long side of HLF. Float is extremely tight, bid/ask spreads widening, deriative market trades dominating what is going on. I seldom waste my time on bulletin boards, only wish to inform those who lack experience to the risk/rewards ratio of this particular equity. I believe there is huge risk to being long, i.e.....Icahn selling, Fidelity selling, Wells notice, China throwing them out, Venezula currence questions on last earnings, restatement of earnings, on and on, this one could go to zero in nothing flat........buyer beware
    14 Aug 2014, 11:49 AM Reply Like
  • ForTheTruth
    , contributor
    Comments (906) | Send Message
     
    John,

     

    You have stated your opinion and that is fine. As long as you are investing with your money and not mine, knock yourself out. I prefer to follow leaders and successful traders. Thank you.
    14 Aug 2014, 11:53 AM Reply Like
  • Truthfirst
    , contributor
    Comments (599) | Send Message
     
    Icahn is not a hedge fund, its his own money, a private investor

     

    Icahn has a major stake in IEP but is it a holding company.

     

    George Soros also is a private investor, a family investment firm that was a hedge fund but is no longer

     

    Stiritiz is a private investor.
    14 Aug 2014, 02:34 PM Reply Like
  • Truthfirst
    , contributor
    Comments (599) | Send Message
     
    HLF General Legal Council and the Chief Legal Officer have both just bought shares in the company.

     

    One buying to add to his portfolio and his children's portfolio.

     

    You don't buy stocks for your children's future in a company that is being reviewed for legal issues if things are going bad. And who would know if legal things are good or bad, the companies lawyers.
    13 Aug 2014, 07:49 PM Reply Like
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