Bloomberg News

Hedge Fund Myriad Increased Herbalife Stake in Second Quarter

August 13, 2014

Myriad Asset Management Ltd., the Hong Kong-based hedge fund led by a former Asia head of Highbridge Capital Management LLC, raised its stake in Herbalife Ltd. (HLF:US) in the second quarter, according to a filing.

Myriad bought 17,200 Herbalife shares, boosting its total holdings by 36 percent, according to data compiled by Bloomberg from quarterly 13F filings with the U.S. Securities and Exchange Commission. Its stake in the nutrition company was valued at $4.2 million at the end of June.

Herbalife is facing probes in the U.S. spurred by allegations of a pyramid scheme by billionaire hedge-fund manager Bill Ackman. Its share price has fallen 23 percent since July 28 when it announced second-quarter profit that trailed (HLF:US) analysts’ estimates.

Myriad added Herbalife shares during the three months when the market value of its 13F holdings fell 40 percent to $284.4 million at the end of June, according to the filings.

Led by Chief Investment Officer Carl Huttenlocher, Myriad’s hedge fund that focuses on Asia-Pacific-related securities boosted its assets to almost $3 billion by late May, after returning about 20 percent last year and 7 percent in 2012, three people with knowledge of the matter told Bloomberg News then.

Myriad disclosed an $8.7 million stake in Micron Technology Inc. after a 14-fold increase in the quarter in the number of shares it held in the largest U.S. maker of memory chips. Micron (MU:US), which bought the bankrupt Japanese rival Elpida Memory Inc. in July 2013, announced higher-than-expected (MU:US) third-quarter profit and sales in June.

Myriad sold out of 18 stocks in the three months, including casino operators Las Vegas Sands Corp. and Melco Crown Entertainment Ltd.; luxury goods companies such as Ralph Lauren Corp. and Tiffany & Co. as well as baby-formula maker Mead Johnson Nutrition Co.

It reduced holdings in Apple Inc. (AAPL:US), Facebook Inc. (FB:US) and theme-park operator SeaWorld Entertainment Inc. The fund bought shares in Chinese search-engine company Baidu Inc. and Microsoft Corp. (MSFT:US) in the quarter.

To contact the reporter on this story: Bei Hu in Hong Kong at bhu5@bloomberg.net

To contact the editors responsible for this story: Andreea Papuc at apapuc1@bloomberg.net Iain McDonald


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Companies Mentioned

  • HLF
    (Herbalife Ltd)
    • $37.96 USD
    • 0.06
    • 0.16%
  • MU
    (Micron Technology Inc)
    • $34.49 USD
    • 0.04
    • 0.12%
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