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  "documentTitle": "Pershing Square portfolio (multi-holding LP update: MDLZ, VRX, APD, ZTS, CP, QSR, HHC, PAH, FNMA/FMCC, HLF short)",
  "authorId": "01_Pershing_Square",
  "authorName": "William Ackman",
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  "sourceTypeLabel": "Activist investor",
  "presentationDate": "2016-01-28 00:00:00",
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  "notes": "Uses a combination of direct CEO quotes and financial disclosure data to build a case for the 'pyramid scheme' thesis.",
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      "kind": "callout",
      "text": "All facts continue to confirm that Herbalife is a pyramid scheme",
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      "text": "In its latest 10Q, HLF’s total expenses for defending itself were $11.2 million in the quarter. Expenses related to “responding to governmental inquiries” increased from $5.8M in Q2 to ~$7.6M in Q3.",
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      "text": "Still No Proof of Retail Sales",
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      "text": "Recently disclosed HLF video emphasizes recruiting and undermines the existence of retail sales",
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      "text": "Regulatory investigations ongoing",
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      "text": "Herbalife has not changed its disclosure about the Department of Justice seeking information from the Company, certain of its Members and others about its business practices",
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      "text": "Through 9/30/15, HLF had spent ~$101 million defending itself, but still refuses to collect retail sales information",
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      "text": "CEO Michael Johnson1: “It's the recruiting, meaning bringing new distributors into our company, which is the most vital part of our bloodstream. We bring new distributors in – we grow. It's that simple. It's that simple. And the company has built its whole reputation, its whole life, on recruiting.”",
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      "text": "Sources: Herbalife financial statements. 1: We believe this clip was taken from a longer video from Herbalife's 2005 global management retreat, previously reported on by the press.",
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      "text": "Herbalife: It's a Pyramid Scheme",
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