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Is Herbalife Ltd. (HLF) A Good Stock To Buy?

Now, key money managers have jumped into Herbalife Ltd. (NYSE:HLF) headfirst during the latest quarter. Farallon Capital, managed by Thomas Steyer, assembled the largest position in Herbalife Ltd. (NYSE:HLF). The fund reportedly had $130.1 million invested in the company at the end of the quarter. Jonathon Jacobson’s Highfields Capital Management also initiated a $62 million position during the quarter. The following funds were also among the new HLF investors: Ken Heebner’s Capital Growth Management, Ken Griffin’s Citadel Investment Group, and Alec Litowitz and Ross Laser’s Magnetar Capital.

Let’s now take a look at hedge fund activity in other stocks – not necessarily in the same industry as Herbalife Ltd. (NYSE:HLF) but similarly valued. We will take a look at Empresa Nacional de Electricidad S.A. (NYSE:EOCC), CBOE Holdings, Inc (NASDAQ:CBOE), Fortinet Inc (NASDAQ:FTNT), and athenahealth, Inc (NASDAQ:ATHN). This group of stocks’ market caps are similar to HLF’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
EOCC 11 35128 2
CBOE 24 590194 9
FTNT 25 439090 -1
ATHN 15 156671 -5

As you can see these stocks had an average of 19 hedge funds with bullish positions and the average amount invested in these stocks was $305 million. That figure was a whooping $3.09 billion in HLF’s case. Fortinet Inc (NASDAQ:FTNT) is the most popular stock in this table. On the other hand Empresa Nacional de Electricidad S.A. (NYSE:EOCC) is the least popular one with only 11 bullish hedge fund positions. Compared to these stocks Herbalife Ltd. (NYSE:HLF) is more popular among hedge funds. Considering that hedge funds are fond of this stock in relation to its market cap peers, it may be a good idea to analyze it in detail and potentially include it in your portfolio.

Disclosure: None

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