Capital Research Global Investors acquired 9,241,801 shares or 10.1% stake in Herbalife Ltd. (NYSE:HLF), a multilevel marketing company selling nutrition and weight loss products based on its 13G filing with the Securities and Exchange Commission (SEC).

Capital Research Global Investors is a subsidiary of Capital Group, a global investment management organization with more than one trillion assets under management (AUM). The company was founded by Jonathan Bell Lovelace in 1931.

Herbalife executives bought more shares

Earlier this month, the executives of Herbalife Ltd. (NYSE:HLF) increased their interest in the company. Jon Desimone, the chief financial officer and Des Walsh, the president of the company each bought 10,000 shares for more than $500,000. Its chief operating officer, Richard Goudis acquired 10,700 shares worth nearly $600,000 during its president.

They boosted their stake in Herbalife Ltd. (NYSE:HLF) after activist hedge fund manager; Bill Ackman’s presentation failed to convince other investors that the company is a pyramid scheme.

Herbalife LTd. HLF
Herbalife LTd. HLF

Herbalife quarterly earnings miss estimates

Herbalife Ltd. (NYSE:HLF) reported adjusted earnings of $1.55 per share on $1.3 billion in revenue, higher than its recorded earnings of $1.41 per share on $1.2 billion in revenue in the same period a year ago.

Its second-quarter financial performance is below the consensus estimate of Wall Street analyst of $1.57 in earnings per share on $1.4 billion in revenue.

Whitney Tilson of Kase Capital Management believed that the second-quarter financial results of Herbalife Ltd. (NYSE:HLF) could be the beginning of its demise. Just like Ackman, Tilson has a substantial short position on the company. According to him, “We may look back on this earnings report as the beginning of the end of HLF, even if regulators don’t act; because when these pyramid schemes start to collapse, they can really implode fast…”

Herbalife plans to expand manufacturing in China

Last month, Herbalife Ltd. (NYSE:HLF) announced its plan to expand its manufacturing capabilities in China. The company aims to increase its capacity in line with its anticipated growth in the country.

According to the company, it would renovate an existing and newly built facility at iangning High-tech Industry Park (JHIP), Nanjing as its manufacturing plant. Herbalife Ltd. (NYSE:HLF) said it would invest $40 million for the initial development of the project. The company aims to develop the facility to the highest operating standard. It expected to complete and make it operational by the end of 2015.