Ackman Announces Huge Stake in Valeant Pharmaceuticals

Mar 9 2015 | 2:50pm ET

Bill Ackman and his activist fund Pershing Square Capital Management have built a near 5% stake in Valeant Pharmaceuticals.

The near $3.3 billion position makes Pershing Square the Canadian drug company's fifth-largest stakeholder.

Shares of Valeant rose nearly 3% after Ackman's fund disclosed the position. The news comes just months after Ackman partnered with the company in an attempt to takeover Botox manufacturer Allergan. 

In 2014, Allergan rejected Valeant's takeover bid, sued Ackman's hedge fund, and sold itself to rival Actavis.

But reports indicate that Ackman's latest disclosure isn't centered on shareholder activism this time. Rather than pushing for board appointments, spin-offs, or strategy changes, Ackman is expected to take a passive approach to his investment this time around.

Although the takeover bid for Allergan failed in 2014, Valeant recently scored a huge acquisition with the purchase of Salix Pharmaceuticals for roughly $14 billion.

Last year, Pershing Square was the top performing large hedge fund with more than $1 billion in assets under management.

In Depth

Q&A: Portfolio Advisors' Brian Murphy On The Advantages of A Private Markets Platform

Jan 2 2018 | 11:05am ET

Most private markets firms reference their platforms as a source of competitive...


CFA Institute To Add Computer Science To Exam Curriculum

May 24 2017 | 9:25pm ET

Starting in 2019, financial industry executives sitting for the coveted Chartered...

Guest Contributor

Steinbrugge: The Top Hedge Fund Industry Trends for 2018

Jan 2 2018 | 12:22pm ET

Each year, Don Steinbrugge’s Agecroft Partners compiles the insights gained...


FINalternatives Trending

From the current issue of