Regulatory filings show which Valeant investors exited in Q1

By Svea Herbst-Bayliss
BOSTON, May 16 (Reuters) - Some of Valeant Pharmaceuticals (NYSE:VRX)
International Inc.'s VRX.TO most loyal supporters lost hope
during the first quarter and either exited the embattled company
or significantly cut back their stakes, regulatory filings
released on Monday show.
Brahman Capital, which had been invested in Valeant for more
than five years and committed roughly one-quarter of its capital
to the company, liquidated its position by selling 8.2 million
shares, its filing shows.
Senzar Asset Management, which had put nearly 15 percent of
its assets in Valeant, said in a filing that it also exited its
position, having sold 1.3 million shares.
Brave Warrior, a Valeant investor for more than four years
with roughly one quarter of its capital invested in the company,
slashed its stake by 67 percent. The fund sold 4.2 million
shares during the quarter, its filing shows.
Even hedge funds that had not put as much money to work in
Valeant exited the stock, filings show.
Viking Global Investors exited, selling 7.8 million shares.
Iridian Asset Management liquidated its entire holding of 4.3
million shares while Coatue Management sold its entire holding
of 1.7 million shares and Jana Partners got rid of its 1.6
million shares.
Valeant's troubles in the first quarter are well documented
and came to a head on March 15. The share price skidded 50
percent when former Chief Executive officer Michael Pearson (LON:PSON),
back after a long medical leave, said the company would not meet
its earnings goals and might default on its debt.
But which investors had made big moves in Valeant became
clear only on Monday, when hedge funds were required to submit
quarterly filings to the Securities and Exchange Commission.
While so-called 13-F filings, showing which stocks investment
managers owned at the end of the previous quarter, are backward-
looking, they are still watched closely for possible trends.
Valeant had been one of the pharmaceutical industry's most
widely owned stocks as its steady stream of acquisitions fueled
strong stock gains. But questions about its accounting and
business practices, coupled with lawmakers' concerns about sharp
price hikes, clouded its prospects last summer. In the last 52
weeks, its stock tumbled 87 percent.
Still, the company had its supporters and filings show that
a few hedge funds added to their bets during the first quarter.
Okumus Fund Management nearly doubled its holding to 3.7 million
shares, while Farley Capital raised its stake by 38 percent to
378,458 shares. It also bought call options on 17,000 shares.
Farallon Capital bought 219,700 shares to own 269,700 shares at
the end of the quarter.
Most notably, Pershing Square (NYSE:SQ) Capital Management, the
company's biggest public supporter with a 9 percent stake, put
its founder and vice chairman on Valeant's board during the
first quarter.