Bronte Capital, an investment management firm, published its “Amalthea Fund” third quarter 2021 investor letter – a copy of which can be downloaded here. A return of 8.05% was delivered by the fund for the third quarter of 2021, whereas the globally diversified MSCI ACWI (in AUD) was up 2.84%. for the same period. You can take a look at the fund’s top 5 holdings to have an idea about their best picks for 2021.
Bronte Capital, in its Q3 2021 investor letter, mentioned Herbalife Nutrition Ltd. (NYSE: HLF) and discussed its stance on the firm. Herbalife Nutrition Ltd. is a Los Angeles, California-based nutrition company with a $4.5 billion market capitalization. HLF delivered a -15.84% return since the beginning of the year, while its 12-month returns are down by -16.03%. The stock closed at $40.44 per share on November 19, 2021
Here is what Bronte Capital has to say about Herbalife Nutrition Ltd. in its Q3 2021 investor letter:
“Herbalife is – as we have discussed many times before – a multi-level marketing scheme selling weight-loss shakes. The idea is simple. If I replaced six meals a week with low-calorie protein shakes and I walked an extra 15km a week I would quickly lose 15-20kgs. It would be good for me. It is also well-nigh impossible to do.
One solution is to hire a personal trainer (usually of the opposite sex) and have them nag you. You will do tough stuff for an attractive member of the opposite sex. More realistically you could just have your friends nag you. And that is why this works so well as a multi-level marketing scheme. The person who sells you the shakes has an incentive to keep you on the diet.
We have looked at many distributors and we see a weight-loss program – implemented for (literally) millions of people – which works about as well as any weight-loss health program that ever existed. That still means it fails most of the time – but it works enough that we can be proud of owning this stock and the health benefits it provides. Herbalife, it turns out, grew well during COVID. This was initially a surprise to us – as we thought Herbalife depended on the personal touch to make the sale. But, instead, weight loss and associated social clubs moved online – and – in many cases were the main social outlet the customers had.”
Pixabay / Public Domain
Based on our calculations, Herbalife Nutrition Ltd. (NYSE: HLF) was not able to clinch a spot in our list of the 30 Most Popular Stocks Among Hedge Funds. HLF was in 40 hedge fund portfolios at the end of the first half of 2021, compared to 40 funds in the previous quarter. Herbalife Nutrition Ltd. (NYSE: HLF) delivered a -17.45% return in the past 3 months.
Disclosure: None. This article is originally published at Insider Monkey.
