Top 5 Stock Picks of John Hempton’s Bronte Capital

4. Herbalife Nutrition Ltd. (NYSE:HLF)

Bronte Capital’s Stake Value: $61,282,000
Percentage of Bronte Capital’s 13F Portfolio: 7.02%
Number of Hedge Fund Holders: 28

Herbalife Nutrition Ltd. (NYSE:HLF) provides nutrition solutions across South and Central America, North America, Mexico, Europe, China, the Middle East, Africa, and the rest of the Asia Pacific. Following the release of the Q2 results, Riley analyst Jeff Van Sinderen reduced his price objective on Herbalife Nutrition to $38 from $41 and reiterated a ‘Buy’ recommendation on the stock on August 3. The analyst lowered projections to account for currency fluctuations and a slow sales rebound.

Regulatory filings revealed that Bronte Capital owned 3 million shares of Herbalife Nutrition Ltd. (NYSE:HLF) at the end of the second quarter of 2022, valued at $61.28 million, representing 7.02% of the portfolio. Herbalife Nutrition Ltd. (NYSE:HLF) has been in Bronte Capital’s portfolio since the fourth quarter of 2018.

At the end of June, a total of 28 hedge funds tracked by Insider Monkey held long positions in Herbalife Nutrition Ltd. (NYSE:HLF). By comparison, 34 hedge funds held shares in Herbalife Nutrition Ltd. (NYSE:HLF) a quarter ago.

In its Q3 2021 investor letter, Bronte Capital mentioned Herbalife Nutrition Ltd. (NYSE:HLF). Here is what the fund said:

“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…..(Click to read the full text).”