If you’d rather see the apocalypse happen than agree with Bill Ackman…

John Hempton of Bronte Capital has good news for you.

Hempton, an avowed Herbalife bull, is sceptical about whether any inventory loading happened at the company. When a firm requires its distributors to buy lots of inventory, it’s one sign of a pyramid scheme, which grows by recruiting distributors instead of actually selling products. Hempton says there probably wasn’t inventory loading because the company refunds distributors for unsold products.

A look at Herbalife’s website shows that they did offer refunds as of 2014, with one caveat found in a footnote of its pitchbook: “If requested within 90 days for the return of the HMP [Note: That’s the Herbalife Member Pack, a starter pack] and one year for the return of resalable inventory, upon leaving the business.” That’s a conditional refund, to be sure.

Still, Hempton has been hunting for the telltale distributors with tons of unsold Herbalife shakes in his or her basement, and has had trouble — but for one grim exception.

Continue reading: If you’d rather see the apocalypse happen than agree with Bill Ackman…

John Hempton of Bronte Capital has good news for you.

Hempton, an avowed Herbalife bull, is sceptical about whether any inventory loading happened at the company. When a firm requires its distributors to buy lots of inventory, it's one sign of a pyramid scheme, which grows by recruiting distributors instead of actually selling products. Hempton says there probably wasn't inventory loading because the company refunds distributors for unsold products.

A look at Herbalife's website shows that they did offer refunds as of 2014, with one caveat found in a footnote of its pitchbook: "If requested within 90 days for the return of the HMP [Note: That's the Herbalife Member Pack, a starter pack] and one year for the return of resalable inventory, upon leaving the business." That's a conditional refund, to be sure.

Still, Hempton has been hunting for the telltale distributors with tons of unsold Herbalife shakes in his or her basement, and has had trouble -- but for one grim exception.

Continue reading: If you’d rather see the apocalypse happen than agree with Bill Ackman…