One activist investor sold 20 million shares in Mondelez which would yield $834 million at current prices. William Ackman’s hedge fund is selling down his biggest investment, as a disastrous bet on Valeant Pharmaceuticals tears a hole in its portfolio.
The move followed a rout that recently cut shares of Valeant in half. The drop followed a disappointing forecast from the drug maker and a warning that it could face a debt default because it hadn’t filed annual results in time. Valeant is one of Mr. Ackman’s largest holdings. He doubled down on the stock last fall, buying more shares after questions about its accounting sent his position in the company deeply into the red.
In a sign of the current damage to Pershing Square, the value of its publicly traded portfolio slumped 8.9% in just the past week, bringing its year-to-date loss to 26%.
Losses Pershing Square has suffered on Valeant and other investments have raised questions about whether its investors will stick with it. So far they appear to be doing so.
Many of big investors lost a lot of money in the Market, so don't get greedy. Just a thought.
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