Bill Ackman just announced that he has sold out of his hedge fund’s Valeant stock holding, a position that has cost the fund dearly.
Ackman’s firm, Pershing Square Capital, invested in Valeant two years ago. Later that year, the drugmaker started to run into a spate of problems that wiped more than 90% off of its market value. Reuters estimated that the investment caused Ackman to suffer roughly $3 billion in losses.
Pershing Square isn’t the only hedge fund that had made a big bet on the stock. Jeff Ubben’s ValueAct and John Paulson also have big stakes. Ackman has been the most outspoken of the hedge fund managers, though. Here’s how Pershing Square has done in the years since investing in Valeant, based on data from the firm’s publicly traded vehicle, which serves as a proxy for its flagship hedge fund. We’ve compared those numbers to Valeant’s and the S&P500’s performance.
- Pershing Square, Bloomberg data