Pershing Square Punished In July, Down 2.2%

Aug 5 2013 | 11:30am ET

A terrible month for two of its largest positions doomed Pershing Square Capital Management to a red July.

The New York-based hedge fund fell 2.2% on the month, Reuters reports. The firm was burned by its $1 billion short bet against nutritional supplements company Herbalife, whose shares soared 40% in July, and its big long bet on retailer J.C. Penney Co., whose shares dropped 17% on the month.

Pershing Square, which manages $12 billion, has suffered at least $300 million in losses on Herbalife, which the hedge fund's founder, William Ackman, has called a "pyramid scheme."

Most of Pershing Square's losses came in the second half of the month, according to Reuters. The hedge fund had been up 2.2% in the first half of July, pushing its year-to-date gains to about 8%.

Two weeks later, its year-to-date gains had been cut to just 3.8%.


In Depth

The Benefits Of Private Debt Investing

May 7 2015 | 10:43am ET

Jeffrey Haas is chief operating officer of Old Hill Partners Inc., an SEC-registered...

Lifestyle

Yale Receives $150 Million Gift from Blackstone’s Schwarzman

May 12 2015 | 12:10am ET

Yale University announced it has received a $150 million gift from Blackstone Group...

Guest Contributor

How To Generate 6% Yield In A Volatile World

May 22 2015 | 6:41am ET

Private credit comes in many different flavors, all with the common themes of over...

 

Editor's Note