The Morning Brief: Valeant’s Stock Plunges After Pershing Square’s Dump

March 15, 2017   Stephen Taub


Other hedge funds are still holding shares of the embattled drug maker.

All eyes are now on ValueAct Capital and Paulson & Company now that Bill Ackman’s Pershing Square Capital Management has liquidated its huge stake in Valeant Pharmaceuticals International. Shares of the embattled drug company plunged 10 percent on Tuesday after news of Pershing Square’s capitulation on the stock, with the hedge fund firm selling more than 18.1 million shares. Shares of Valeant closed at $10.89 and are now down 25 percent just this year alone.

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Alexander Roepers’ Atlantic Investment Management boosted its stake in Owens Illinois to 5.9 percent of the maker of glass containers. In a regulatory filing, the activist investor used the usual regulatory boilerplate language to say the stock is cheap and it may one day talk to management or take some sort of action. However, the hedge fund firm made it clear it "has no present plans or proposals." At year-end, Owens Illinois was Atlantic’s largest U.S. long position, accounting for more than 18 percent of assets even after the firm cut its stake by about 15 percent.

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Brigade Capital Management more than doubled its stake in Parker Drilling, to 7.125 million shares, or 5.2 percent of the oil driller. The investment is passive.

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Tiger Global Management disclosed it owns nearly 4.9 million shares of Teladoc, or 9 percent of the company that provides health care remotely. The total investment is valued at around $98 million. However, it would have only ranked around twentieth in Tiger Global’s top-heavy portfolio as of year-end.


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