Zero Hedge
0
All posts from Zero Hedge
Zero Hedge in Zero Hedge,

As Valeant Crashes, Ackman's Other Holdings Are Dumping (Except One)

Valeant is crashing again this morning...

 

... following an article in the WSJ which describes how close Ackman got to pulling the plug on his investment:

Among other things, Mr. Ackman has pressed Mr. Pearson for answers, told the lead Valeant director that Mr. Pearson might have to go, and considered dumping his entire initial investment in Valeant, for which he had paid $3.8 billion. Ultimately, he decided to invest even more on the belief that Valeant’s risks are less serious than other investors believe.

Today, on fears of cross-liquidation, the rest of Bill Ackman's holdings are also in free-fall (except Herbalife - his biggest short - which is spiking on forced cover expectations):

 

Two weeks ago we warned readers to stay away from these Ackman-toxic names:

... we - and others - thought a glance at Bill Ackman's largest holdings (of which Ackman has now lost nearly $2 billion on Valeant alone in 2015) was worthwhile in case things start to escalate even quicker: after all, losing nearly a billion dollars in one day will make even the most hardeneded LP nervous and one wonders how long before the rest of Pershing Square's holdings are liquidated

 

Trade accordingly.

*  *  *

Bonus Chart: With the morning full of talking heads proclaiming Bitcoin a speculative bubble not suitable for the average investor, we thought some context would help...