The Globe and Mail reports in its Tuesday edition that investor Bill Ackman walked away from Valeant Pharmaceuticals on Monday with a loss of more than $3-billion as he sold his entire stake in the struggling drug company (all figures U.S.).
A Reuters dispatch to The Globe says that the abrupt and unexpected move by the powerful activist investor sent Valeant shares tumbling almost 10 per cent in after-hours trading. For Mr. Ackman, it marked a dramatic climbdown from his vocal support of the company, but should help soothe his own investors who had begun to show signs of concern about mounting losses in his portfolio.
"We elected to sell our investment and realize a large tax loss which will enable us to dedicate more time to our other portfolio companies and new investment opportunities," Mr. Ackman said in a statement.
Mr. Ackman's Pershing Square Capital Management became one of Valeant's biggest investors in 2015 when it sunk $3.2-billion into the company. At its peak his Valeant interest was worth roughly $4-billion.
Already one of the hedge fund industry's most vocal investors, Mr. Ackman turned himself into Valeant's biggest cheerleader and fixer, and even replaced the chief executive officer.
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