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Alternative Market Briefing

Three hedge funds lost nearly $3bn as Valeant tanks

Wednesday, March 16, 2016

Komfie Manalo, Opalesque Asia:

Three hedge fund managers lost nearly $3bn as shares of Valeant Pharmaceuticals dropped 52% Tuesday, data compiled by Bloomberg showed. Ruane Cunniff & Goldfarb, which manages Sequoia Fund, was the biggest holder of the drug maker’s shares, lost $1.26bn.

William Ackman, whose Pershing Square Capital Management is the biggest hedge funds investor at Valeant with 21.6 million common shares, lost an estimated $767m on paper. John Paulson’s Paulson & Co. gave up nearly $471m. The report said the losses were estimated on the assumption that the investors continue to hold on to their number of shares listed in their latest regulatory filings.

The drop in Valeant shares was prompted by the company’s decision to cut its revenue forecast for 2016. The drug maker lost more than 80% of its share values from an August peak and dropped more than 60% so far this year.

"As the largest shareholder of Valeant, our own credibility as investors has been damaged by this saga," Sequoia’s co-managers Robert Goldfarb and David Poppe wrote in their year-end letter to shareholders on Feb. 22, Bloomberg added.

Valeant adds hedge fund executive, 2 others to board

Last week, Valeant has added t......................

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