Herbalife Stock Battles Continue

Admin   |   21 February, 2015   |   1362   |   3980

George Soros’s fund boosted its stake in Herbalife Ltd. in the fourth quarter, signaling that the embattled maker of diet shakes and supplements still has the billionaire’s backing.

The investor’s firm, Soros Fund Management LLC, added 1.56 million Herbalife shares during the quarter, according to a regulatory filing Tuesday. New York-based Soros Fund now owns 3.8 percent of the company. The stake was valued at about $130 million as of Dec. 31, according to the filing.

Herbalife, which sells nutrition products through a network of independent distributors, came under fire in 2012 from investor Bill Ackman, who accused it of being a pyramid scheme. That led to a probe by the U.S. Federal Trade Commission and slowing growth at Herbalife, which has switched to more conservative sales practices. The stock plummeted last year as Herbalife’s woes mounted.

The shares jumped 5.5 percent to $34.59 at the close in New York after Bloomberg News reported Soros’s increased position before the filing was released. The stock has declined 21 percent since the end of the third quarter.

In separate filings Tuesday, Okumus Fund Management Ltd. disclosed it had sold all of its almost 2 million shares, while Tiger Consumer Management LLC unloaded its 1.8 million shares.