Tuesday, 31 May 2016
Last updated 3 days ago
Jul 3 2014 | 7:35am ET
Pershing Square Capital Management surged in the first half, banishing memories of a difficult—if ultimately successful—2013.
The New York-based hedge fund added 2.4% in June to finish the first six months of 2014 up 25%, it told clients. The returns make the $14.7 billion firm one of the few hedge funds to be handily beating the broader markets this year; the Standard & Poor’s 500 Index rose 6.1% in the first half.
Unlike last year, when Pershing Square’s most prominent investment—a $1 billion short against Herbalife—weighed heavily on returns, this year’s headline bet has been a big winner: Shares of Allergan Inc., which makes Botox, have soared since the hedge fund announced a nearly 10% stake in the company earlier this year.
Pershing Square is working with Valeant Pharmaceuticals International on the latter’s $53 billion bid for Allergan. Valeant has launched a hostile tender offer for the company, while Pershing Square is seeking the ouster of a majority of its board.
Pershing Square has also trimmed its losses on Herbalife this year after several probes into the company, which hedge fund founder William Ackman says is a pyramid scheme, were launched.