Monday, August 31, 2015

Recent volatility hurts Bill Ackman

The recent stock market fluctuations have spared nobody, including Bill Ackman, the hedge fund star and founder of the firm Pershing Square Capital Management.

In a letter obtained by CNBC, Ackman explained that the 10% gains he had made from investments over the year had been wiped out by the response of markets to the uncertainty surrounding the Chinese economy.

“At the date of this report, the year to date investment performance has been erased, and the company is at a loss position for the year,” Pershing Square reportedly wrote.

Among investments that Pershing lost on big-time, CNBC noted, included Mondelez International, which has fallen almost 9% since Ackman took a $5.5 billion stake early this month. Valeant Pharmaceuticals and Canadian Pacific Railway, other Ackman investments, lost around 11 and 14% respectively.


Monday, August 24, 2015

Bill Ackman Sprout shares

Investor Bill Ackman, who allied himself with Valeant Pharmaceuticals International in a drug- industry takeover battle last year, held a small stake in the company Valeant agreed to acquire this week, according to a person familiar with the matter.

Ackman acquired less than 1.5 percent of Sprout Pharmaceuticals Inc. in its most recent round of funding, said the person, who asked not to be identified discussing a private matter.

That was before Sprout won approval Tuesday by U.S. regulators for its pink libido-boosting pill for women. Valeant announced Thursday that it will buy Sprout for $1 billion, plus unspecified future payments. Ackman's stake was reported earlier by the Wall Street Journal. He wasn't involved in Sprout's sale process, the person said.

Ackman's Pershing Square Capital Management worked last year on a campaign to push Allergan to sell itself to Valeant. Allergan eventually agreed to be bought instead by Actavis. Pershing Square still owns a 5.7 percent stake in Valeant.

When Ackman invested in Sprout, the company was valued at around $500 million, the person familiar with the matter said. The purchase was personal for Ackman, as Pershing only invests in public companies.