Wednesday, 22 October 2014
Last updated 16 hours ago
Aug 19 2013 | 9:29am ET
Nutritional supplements company Herbalife may—as Pershing Square Capital Management's William Ackman alleges—or may not be a pyramid scheme. But it kept company with pyramid schemes, according to a new report.
A Financial Times investigation shows that Herbalife maintained its ties to Online Business Systems for almost a decade after a Canadian court had branded the company's predecessor a pyramid scheme.
A 2004 ruling found that Global Online Systems, which became OBS, was a criminal "scheme of pyramid selling." The company's main business was recruiting salespeople for Herbalife.
GOS was ordered to make changes to its practices and to notify its customers about its criminal conviction. But before the court ruled, the company encouraged customers to move their business to OBS, which is run by the daughter of one of GOS' founders. And OBS promised that "your Herbalife lineage remains the same regardless of the changes to your new marketing system."
Herbalife earlier this year moved to distance itself from OBS, the FT reports, restricting the use of leads and marketing materials by distributors. The company has since ended the sale of leads to or by distributors.
Sep 22 2014 | 4:15pm ET
"I tell people that everybody likes good news and so if you have good performance that’s wonderful,” explains Mike McKitish of Peddie School's endowment, “but it’s the people that want to talk about the bad news or where they drifted and how they came back and how they stayed to their discipline…” that he wants to hear from. Read more…
Sep 30 2014 | 9:29am ET
The crisp Autumnal days of October are upon us, and so are a few of the hedge fund industry’s favorite charitable events. If you have never been to Rocktoberfest, well, you are missing out. And for a quieter evening of sipping and socializing, stop by HFC’s Wine Soiree. Read more…
Most traders agree that proper risk management is the key to successful trading. However, many traders depend on the deeply flawed measure of standard deviation as a benchmark of risk. Here we put it ...