Investing.com - Financial Markets Worldwide
Cyber Monday Deal: Up to 60% off InvestingProCLAIM SALE

Ackman's fund sells 5 mln Valeant shares to generate tax loss

Published 2015-12-31, 05:03 p/m
© Reuters. Ackman's fund sells 5 mln Valeant shares to generate tax loss
PSON
-
BHC
-
SQ
-

BOSTON, Dec 31 (Reuters) - Billionaire investor William
Ackman said on Thursday he has sold roughly 5 million shares in
drug company Valeant International VRX.TO in order to generate
a tax loss as investors in his Pershing Square (N:SQ) Capital
Management face the biggest loss in the company's history.
Ackman's hedge fund now owns 29.1 million shares in Valeant,
or 8.5 percent of the company, down from 34.1 million shares, or
9.9 percent, according to a regulatory filing made after the
market closed on Thursday, the last trading day of 2015.
Pershing Square sold shares in its two on-shore portfolios
in order to generate a tax loss for their investors while the
two off-shore portfolios did not sell any shares, the filing
said.
News that Ackman, one of Valeant's biggest and most vocal
backers, sold some of his shares comes at the tail end of a
tumultuous year for the Canadian pharmaceutical company, whose
share price had surged and then plummeted amid questions about
its drug pricing and accounting practices.
The company, after disclosing last week that its chief
executive officer, Michael Pearson (L:PSON), had been hospitalized with
severe pneumonia, this week named a trio of company executives
to take over until Pearson returns.
Ackman was not available for comment, and a company
spokesman declined to say anything beyond the filing.
For Ackman, 2015 is sure to be one of his worst years ever,
in part because of the heavy losses in Valeant. One of Ackman's
funds posted a 19.7 percent loss through Dec. 29. Final
calculations for all of the firm's funds have not been made.
Valeant shares closed the year down 22 percent, at $101.67,
at less than half the year's high of $260 reached in early
August.

Latest comments

Install Our App
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.