ValueAct Capital Boosts Stake In Valeant Pharmaceuticals As Stock Skids

Mar 17 2017 | 10:59pm ET

Jeff Ubben's activist hedge fund ValueAct Capital has raised its stake in embattled Canadian drug company Valeant Pharmaceuticals just days after Bill Ackman’s Pershing Square threw in the towel and booked a $3 billion loss on its position in the stock.

ValueAct bought $30 million worth of Valeant shares this past week, according to a Bloomberg article citing a disclosure by the company on Thursday. It is a miniscule amount compared to ValueAct’s prior positions in the stock, which it has owned since 2006, but carries symbolic value now that Pershing has left. 

With this latest purchase, ValueAct now owns 5.2% of Valeant, up from 4.4% last quarter, and one of the company’s two largest shareholders alongside John Paulson’s Paulson & Co., which owns 5.7%. ValueAct partner Robert Hale remains a member of Valeant’s board.

Valeant's’ share price, already down more than 95% since its July 2015 high, fell more than 10% further on the Pershing news but recovered half that amount to close the week at just over $11. 

In Depth

PAAMCO: Will Inflation Deflate the Asset Bubble?

Jan 30 2018 | 9:49pm ET

As the U.S. shifts from monetary stimulus to fiscal stimulus, market pricing should...


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

Boost Hedge Fund Marketing ROI By Raising Your ROO

Feb 14 2018 | 9:57pm ET

Tasked with delivering returns on client capital, a common dilemma for many alternative...