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

Israeli Hedge Fund Harnesses Big Data

Jul 28 2014 | 8:10am ET

Apica Green is a multi-million dollar Israeli hedge fund that is based in Tel Aviv...

Lifestyle

David Yarrow On Growing His Hedge Fund And Shooting The Animals And People Of Africa - As A Photographer

Jul 23 2014 | 6:44am ET

While he’s always been a photographer, recent expeditions to Iceland, Ethiopia...

Guest Contributor

Compelling Opportunities In The Alternatives Space

Jul 29 2014 | 9:33am ET

In an environment where many asset classes seem expensive by historical standards...

 

Sponsored Content

    Northern Trust Helps Hedge Funds Navigate Derivatives Regulations

    Jul 8 2014 | 10:48am ET

    The surge in derivatives regulation is among the most complex challenges facing the financial services industry today. Northern Trust’s Joshua Satten recently spoke with FINalternatives to share insights into the challenges presented by new regulation and explore how the industry is responding. Read more…

Publisher's Note