Tuesday, 21 February 2017
Last updated 21 min ago
Aug 5 2011 | 12:39pm ET
Paulson & Co. isn't the only big hedge fund nursing a nine-figure loss this summer.
When pharmaceutical company Dendreon Corp. withdrew its 2011 revenue estimate after it admitted it was still struggling to educate doctors about its new prostate-cancer drug, Provenge. That sent the company's shares down by two-thirds, and left SAC Capital Advisors with a paper loss of $196 million.
SAC's prostate problems follow Paulson's $574 million loss on Chinese timber company Sino-Forest last month. Sino-Forest shares plummeted by some 90% in the wake of a research report accusing the company of overstating its timberland holdings.
SAC is Dendreon's biggest shareholder, but not its only shareholder among hedge funds. Balyasny Asset Management, Citadel Investment Group, Healthcor Management, Millennium Management, Soros Fund Management and Visium Asset Management all owned sizeable stakes in the company, as well.