Hedge fund billionaire Bill Ackman, founder of $12 billion Pershing Square Capital, is having the worst year in his fund’s history.
Pershing Square Holdings, his fund’s publicly traded vehicle, has fallen 26.4% through March 15, according to a performance update.
And the first quarter isn’t even over.
Last year, Pershing Square suffered its “worst year” in its history, losing 20.5%.
His returns so far this year have been mostly dragged down by Valeant Pharmaceuticals’ massive decline. Ackman is the largest hedge fund shareholder with more than 30.71 million shares, or a 9% stake.
Ackman lost more than $1 billion — on paper — on his position on Tuesday alone. Since disclosing a position in the first quarter of 2015, his fund’s losses to date on his Valeant investment are estimated at north of $2.5 billion.
Valeant got slaughtered on Tuesday after the company reported fourth-quarter earnings results that fell below analysts’ expectations and cut its revenue forecast for the year. The stock collapsed 51% on the news.
The lowered revenue guidance adds to a tough run for Valeant, which has been sliding since late 2015 because of scrutiny in Washington, DC, over drug-price increases and accusations from a short seller. Just last month, the company confirmed that it was part of several ongoing investigations.
Ackman, a well-known activist investor, makes large, concentrated bets in a handful of companies. This year, the majority of his long positions have collapsed, while his only short bet, Herbalife, has made gains.
Ackman also announced on Wednesday that he had sold a big portion of his Mondelez stake.
Here’s a rundown of how his stock holdings have performed this year/so far in March:
- Valeant (VRX): -68% YTD / -49% MTD
- Platform (PAH): -38% YTD / +12% MTD
- Fannie Mae (FNMA): -7.3% YTD / +10.22% MTD
- Freddie Mac (FMCC): -9.3% YTD / +8.21% MTD
- Canadian Pacific (CP): -0.48% YTD / +4.79% MTD
- Howard Hughes (HHC): -13.64% YTD / +5.27% MTD
- Restaurant Brands International (QSR): -3.44% YTD / +5.29% MTD
- Air Products & Chemicals (APD): -0.4% YTD / +1.17% MTD
- Zoetis (ZTS): -15% YTD / -0.8% MTD
- Mondelez (MDLZ): -7.14% YTD / +2.74% MTD
Meanwhile, Herbalife, a multilevel marketer that sells weight-loss shakes, has climbed more than 7% this year. Herbalife has gained more than 5.3% this month.
Ackman has been betting against the company since 2012 on the belief that it’s operating a “pyramid scheme” that preys upon poor people. Herbalife has denied his allegations.
As reported by Business Insider