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...................... To view our full article Click here
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