Pershing Square said in its statement that by selling now it would “realize a large tax loss, which will
enable us to dedicate more time to our other portfolio companies and new investment opportunities.”
The move by Mr. Ackman to part ways with Valeant has similarities with Pershing
Square’s big investment in J. C. Penney, where he also had a board seat.
William Ackman Sells Pershing Fund’s Stake in Valeant -
By MATTHEW GOLDSTEINMARCH 13, 2017
William A. Ackman is bailing out of one of his hedge fund’s worst investments by selling
his fund’s shares in Valeant Pharmaceuticals International, a troubled drug maker.
But Valeant proved to be an even harsher bet for Mr. Ackman
and Pershing Square; it was responsible for big losses incurred by the hedge fund the last two years.
For months last year, Mr. Ackman said that Valeant, once a favorite of many hedge funds, would turn things around.
In Monday’s announcement, Mr. Ackman said that he and Stephen Fraidin, a Pershing Square vice chairman,
would remain on Valeant’s board until the company’s annual meeting but would not stand for re-election.
In Pershing Square’s statement, Mr. Ackman did not offer any reason for getting
out of Valeant now or explain the decision to let his firm sell its shares.
