Morning Brief: Suddenly Valeant’s Stock is Surging

November 09, 2017   Stephen Taub

Shares of Valeant Pharmaceuticals International jumped more than 23 percent in just three days.

Valeant Pharmaceuticals International’s stock is back in the black for 2017. The embattled drug company surged 5.5 percent Wednesday to close at $14.88, extending gains after a better-than-expected quarterly earnings report on November 7. The stock is now up more than 23 percent in just the past three days, putting it up 2.5 percent for the year. Investors also like that Valeant has been selling assets and using the proceeds to reduce debt. In less than two years, the company has pared about $6 billion of debt from its balance sheet. It will be interesting to see in a few days whether any hedge fund was a buyer of the company’s stock in the third quarter, as its shares remain far below their all-time high of more than $257 each.

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The HFRI Fund Weighted Composite Index rose 1.3 percent in October, bringing returns for the year to 7.2 percent. October was the index’s twelfth straight month of gains and the biggest return since July 2016. Quantitative CTA strategies drove returns, while equity and fixed-income strategies also fared well. HFR’s Systematic Diversified Index jumped 4 percent last month, its best performance since January 2015. The HFRI Macro (Total) Index rose 2.5 percent in October, the strongest monthly performance since December 2010, reversing a small loss for the year. It is now up 2.4 percent.

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Builders Fund announced Wednesday that it has raised $15 million in new capital commitments for its first private equity fund, bringing the total to $45 million. The investment pool is now closed to new capital. The Builders Fund is a "purpose-driven" firm that invests in sustainable food and agriculture, health and wellness, and resource efficiency. The firm has acquired "a significant stake" in MPOWERD, which specializes in clean-energy products, according to the announcement.


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