Herbalife Ltd.

HLF position long John Hempton, Bronte Capital

Thesis

Herbalife operates on a business model that combines physical goods with social reassurance, leading to high retention rates among distributors. The retention rate has improved from 49% to about 65%, indicating a strong and honest business model that counters criticisms about being a rip-off.

Did it work?

inconclusive confidence: low

Without specific price performance data or a defined time horizon for the thesis, it's difficult to assess whether the investment thesis has played out. While the improvement in retention rates is a positive indicator, the lack of concrete results or time elapsed makes it impossible to draw a definitive conclusion.

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