Shares of Herbalife are spiking on news another hedge fund has taken a long position in the nutritional supplement marketer.
Perry Capital has taken a new long position in Herbalife over the past six weeks, according to sources.
The position is said to be under 5 percent.
According to sources, Perry Capital believes the stock is cheap and the company is not the pyramid scheme Bill Ackman has said it is.
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Perry joins other big investors like Carl Icahn and George Soros in making long bets on the company.
Ackman, meanwhile, has taken a $1 billion short position in Herbalife.
The stock has increased about 75 percent since Ackman's Dec. 20, 2012, presentation in which he called the company a pyramid scheme—an accusation Herbalife has vehemently denied.
(Read more: Ackman to CNBC: I haven't covered Herbalife short)
—Reporting by CNBC's Scott Wapner.