According to sources, Perry Capital believes the stock is cheap and the company is not the pyramid scheme Bill Ackman has said it is.
What's the stock doing now? (Click here for the latest quote)
Perry joins other big investors like Carl Icahn and George Soros in making long bets on the company.
(Read more: Ackman goes to SEC in latest chapter of Herbalife saga)
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.