Will Herbalife’s Business Model Criticism Frazzle These Top Institutional Shareholders?

Herbalife Inc. (NYSE:HLF) revealed information about the compensation that they paid during 2012 to their entire United States distributor network. 88% received no payments and 71% did not recruit any other distributors. The company admitted that about 73% of their distributors aimed to get a discount of the company’s products rather than to earn money by selling them. The company’s disclosure of figures comes amidst criticism of their business model by hedge fund manager Bill Ackman who calls it just a “well-managed pyramid scheme.” Other hedge fund luminaries, such as Third Point’s Daniel Loeb and Carl Icahn, disagree.

Will  Herbalife Ltd.’s shareholders increase their holdings? They reported owning a total of 18.348 million shares on 12/31/2012. The shares closed at $32.94 on 12/31/2012.

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Here are the ten largest positions in Herbalife Ltd. at the end of December 31st, 2012.

Vanguard Group Inc. held 5,735,691 shares on 12/31/2012 worth $188,933,654. This brought the portfolio total to 0.02%.

Schroder Investment Management Group held 1,382,098 shares on 12/31/2012 worth $45,526,306. This brought the portfolio total to 0.01%.

Kalmar Investments Inc, /DE/ held 1,110,336 shares on 12/31/2012 worth $36,574,466. This brought the portfolio total to 0.84%.

Eagle Asset Management Inc, held 928,063 shares on 12/31/2012 worth $30,570,394. This brought the portfolio total to 0.24%.

Bank of New York Mellon Corp, held 866,349 shares on 12/31/2012 worth $28,537,535. This brought the portfolio total to 0.01%.

AGF Investments Inc. held 846,326 shares on 12/31/2012 worth $27,877,977. This brought the portfolio total to 0.34%.

Canada Pension Plan Investment Board held 709,609 shares on 12/31/2012 worth $23,374,519. This brought the portfolio total to 0.15%.

Hexavest Inc. held 419,916 shares on 12/31/2012 worth $13,832,032. This brought the portfolio total to 0.27%.

Legal & General Group PLC. held 413,941 shares on 12/31/2012 worth $13,635,216. This brought the portfolio total to 0.02%.

Chicago Equity Partners LLC. held 377,890 shares on 12/31/2012 worth $12,447,696. This brought the portfolio total to 0.43%.

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