Bill Ackman’s Struggles In One Chart
At this point the schadenfreude amongst investors for Bill Ackman and his hedge fund Pershing Square, has to be reaching a peak. Over the past 48 hours Valeant Pharmaceuticals’ stock has declined 19% largely as a result of the company revealing that it was being investigated by the Securities and Exchange Commission. The below chart depicts Bill Ackman and Pershing Square’s primarily problem.
After posting its worst annual performance since inception in 2015, Bill Ackman wrote a lengthy year end letter to investors where he discussed the hedge fund’s missteps and the importance of humility (we discussed it here). However, earlier in February several news outlets reported that Pershing Square had already declined close to 20% in 2016, nearly matching its performance in all of 2015. Bill Ackman has one of the most impressive investing records in the business, but his ability to recover appears to be becoming more dubious.
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