Valeant plunges following Bill Ackman’s decision to sell his entire position. Discussing the potential ripple effect for hedge funds with Bethany McLean, Vanity Fair contributing editor, and Herb Greenberg, Pacific Square Research.
Bethany McLean: This Was ‘A Betrayal’ Of Ackman’s Investing Style
Tiger Legatus Master Fund was up 0.1% net for the second quarter, compared to the MSCI World Index's 7.9% return and the S&P 500's 8.5% gain. For the first half of the year, Tiger Legatus is up 9%, while the MSCI World Index has gained 13.3%, and the S&P has returned 15.3%. Q2 2021 hedge Read More
2014 article that might be worth reviewing in light of recent events:
Bill Ackman’s Big Pharma Trade Is Making Wall Street A Very Awkward Place
Things are getting awkward on Wall Street, and Bill Ackman is at the center of it.
Perhaps it was only a matter of time.
The unpleasantness concerns the dogged attempts the activist investor and the pharmaceutical company Valeant have made to purchase the Botox maker Allergan.
From the beginning, the situation has been fraught with the kind of moments that make one bristle, like the time DealBook’s Andrew Ross Sorkin said the controversial pile-on was “too clever by half” — due to the fact that Ackman’s firm had amassed a 10% stake in Allergan, effectively limiting the company’s freedom to decide its fate.
Or there was the moment when Allergan sued Valeant and Ackman for insider trading, alleging that they colluded to make an offer for the company in February.
Or when the SEC launched its own insider-trading investigation into the now-$56 billion matter.
These were all uncomfortable moments. But they weren’t personal. They were part of the usual Wall Street ebb and flow of drama and information. But on Tuesday, people started veering into more discourteous territory.
It happened at the annual Grant’s Interest Rate Observer conference at the Plaza Hotel, where Ackman did a short interview. The event was hosted by Jim Grant, the editor and founder of the Observer. He looks like Bill Nye but nerdier (if you can imagine), with glasses so thick you might think they could ask questions themselves.
Article by Linette Lopez, Business Inside, read the full article here.
Ackman says Chanos wrong on Valeant
Bill Ackman, founder and CEO of Pershing Square Capital Management, discusses James Chanos’ short thesis of Valeant Pharmaceuticals.