Ackman's Pershing Square Holdings Down 15.9% YTD Through Oct. 27

Oct 29 2015 | 7:36pm ET

Bill Ackman’s Pershing Square Holdings is down 15.9% for the year through October 27, according to a new update released by the fund.

The publicly traded version of Ackman’s Pershing Square LP hedge fund has been slammed by the travails of pharmaceutical company Valeant, its largest equity holding. Valeant, which traded as high as $260 as recently as August, was crushed last week following a negative report by short seller Citron Research, and closed under $100 on Thursday after CVS and Express Scripts both dropped the firm’s embattled Philidor distribution arm from its rolls. 

Pershing Square, Valeant’s third-largest shareholder at 5.7%, has scheduled a conference call for October 30 to address Valeant. Meanwhile, Ruane Cuniff & Goldfarb, which owns 9.3% of the stock through its Sequoia Fund, released a letter to its investors that acknowledged Valeant had "pushed boundaries”.

On paper, Ackman’s loss on his 21,473,933 shares of Valeant stock (including the two million additional shares he bought last week) is likely more than $1.5 billion at this point, as calculated from data contained in securities filings.

Elsewhere in Pershing Square’s portfolio, the famed hedge fund manager is also nursing losses in Platform Specialty Products, where Pershing is the largest shareholder, and in his short position in Herbalife, which has steadily risen since February.

Ackman raised $3 billion when he listed Pershing Square Holdings as a permanent capital vehicle in Amsterdam in October 2014. Pershing Square Holdings directly managed approximately $5.7 billion as of September 2015, while the total invested in the strategy via all Pershing affiliates, including Ackman’s flagship hedge fund Pershing Square LP, is more than $15 billion.


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