If Ackman Is About To Blow Up, This Is What Plunges Next

Tyler Durden's picture

With Valeant having collapsed over 30% today alone, now under $100 for the first time in a year (from highs over $260 in August 2015):

 

Someone just dumped a bucketload of VRX...

 

... we - and others - thought a glance at Bill Ackman's largest holdings (of which Ackman has now lost nearly $2 billion on Valeant alone in 2015) was worthwhile in case things start to escalate even quicker: after all, losing nearly a billion dollars in one day will make even the most hardeneded LP nervous and one wonders how long before the rest of Pershing Square's holdings are liquidated

 

With these sizable positions, even the slightest fear of liquidation will spark investor front-running in these names, and it seems they already are:

 

And then there is Ackman's "Big Short" - Herbalife...

Charts: Bloomberg

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
buzzsaw99's picture

awesome. don't worry though, the fed will buy them. freddie and fannie have, shall we say, underperformed the s&p.

netpounder's picture

If the feds don't buy them, blame Putin/Trump for the fall.

pods's picture

So all he holds has gone down and the only thing he has shorted has done a moonshot?

Is there some sort of inverse Ackman ETF?

pods

Whalley World's picture

Gartman & Ackman

Short the Man's

Macchendra's picture

And also, BTC is all "sell" right now... BTCFD!

CrazyCooter's picture

I bet Trump's Treasury Secretary in-waiting is giggling like a little school girl this morning!

Regards,

Cooter

TahoeBilly2012's picture

Howard Hughes Corp. WTF?? Where have I been....

aVileRat's picture

Hughes was one of his first claims to fame post-Gotham Partners. He used dad's real estate hookups to land a board seat and the rest his history.

on VRX: It'll likely get dicey now that the cats out of the bag on rollups, which ZH has argued about for a good few months now. This trade will likely see all forms of short covering panic and mania, but just like Nortel, this will get wild. I suspect someone at Mariner has the widest shit eating grin on her face right now. Lets see what tomorrow brings.

Be sure to check out RSI for a fun non-market research program on how a Italian mob scam turned into a 90 million dollar laundering vehicle. If that does not turn out to be BreX: In Space, we got a bigger problem at the SEC.

 

flacon's picture

Leave Ackman alone, his profile says he is a PHILANTHROPIST so he cares very much about the plight of the 99.9%.  (/sarc!!!)

"William A. Ackman, is an American hedge fund manager and philanthropist."

all-priced-in's picture

"William A. Ackman, is an American hedge fund manager and philanthropist."

 

I think hedge fund manager and pedophile - would be more accurate.

 

maybe

 

Hedge fund manager and  necrophiliac.

rocker's picture

It's still not justice. Goldman's HFTs are probably the ones who gain from it. Somebody has the other side in a BIG way. 

No Way that HLF is valid in this market. Most money applied is the wrong side in any trade. This is not a market.

It is ponzi scam with CNBC leading the herd. MOOOOOO 

SuperRay's picture

Ackman's latest investment - Prozac and abilify! ;-)

On suicide watch..

Lets Buy The Dip's picture

haha +1

one scary HALLOWEEN INDICTOR people are not looking at here => http://bit.ly/1jQPB7U

A downdraft in stocks just before Wednesday's close could bring out the bears Thursday morning, when three Dow components and dozens of other companies report earnings.

We have a barrage of earnigns coming out in the next few days, and people are on edge. The trap door could open at any moment. Time will tell. 

Besides earnings, there are weekly jobless claims at 8:30 a.m. ET, and existing home sales and leading indicators, both at 10 a.m. There is a meeting of the European Central Bank, where it could discuss more quantitative easing.

Earnings are also expected from Union Pacific, Dow Chemical, Eli Lilly, Dr Pepper Snapple, Freeport-McMoRan, Nasdaq OMX, Pulte Group, Southwest Airlines, Under Armour, United Continental, Dunkin Brands, Raytheon, Stanley Black and Decker and Janus, ahead of the opening bell. Afternoon reports are expected from Stryker, AT&T, Pandora, Juniper Networks, Capital One, KLA-Tencor and VeriSign.

 

Things could get very interesting tomorrow....maybe ugly. Time will tell. 

NoDebt's picture

He's the most dangerous type of money manager- the "true believer".  Facts be damned, he will MAKE it happen because he's certain he's right.  And if it doesn't happen, it just means he hasn't pushed hard enough or waited long enough for the rest of the world to recognize his genius, not because he was wrong.  He'll hold to his conviction right into the ground.  With other people's money.

 

booboo's picture

You just described me without "the other peoples money"

Thats why I bailed on the casino in 2010 and joined a 12 step program...Arthur Murray, "left one two three left one two three"

DeadFred's picture

4/6 time makes for a good Viennese or cross-step waltz. Just saying but Arthur Murray? Pleeeze!?!

KnuckleDragger-X's picture

A wing and a prayer, along with a massive Fed money infusion and everything will be groovy again....

Al Huxley's picture

That's the problem with the markets - you get a run of good fortune and start to believe you're a genius, and not just lucky in a bull market.  Then when the wheels come off it's hard to acknowledge you've made a mistake, and the temptation to hold 'until it recovers' is huge.  Probably why so many fortunes made in the market are subsequently lost in the market.

BandGap's picture

This is a microcosm of what is to come. One failure tied to a bundle of equities. Seemingly unrelated to each other in terms of business look at what happens when the intersections cross at a major hedge fund.

Only a 4-5% loss could bring the house down. Looks like bundled mortgages in 2007.

Groundhog Day's picture

After he blows up his find and loses billions, he'll get a promotion and head an even larger organization.  

fockewulf190's picture

"Is there some sort of inverse Ackman ETF?"

Maybe he could team up with Gartman.

BullyBearish's picture

Hackman...what a tool, this is the guy who wants Bloomturd to be the next president

El Vaquero's picture

Make Bloomburg the next president.  The resulting breakage will put us that much closer to stopping the insanity of our current bizarro world.  It does not end until it breaks AND the dust settles. 

Bloppy's picture

Herbalife is still a POS either way. Sorry but that is snake oil.

Secret Weapon's picture

Still safer than the shit your M.D. will give you.

Dr. Engali's picture

I don't know, what's Cramer have to say about this?

MadVladtheconquerer's picture
MadVladtheconquerer (not verified) Dr. Engali Oct 21, 2015 11:31 AM

What does Cramit usually say?

MadVladtheconquerer's picture
MadVladtheconquerer (not verified) Dr. Engali Oct 21, 2015 11:47 AM

Oh!!!  I get it!  That's Cramitspeak for buy the collapse, er a dip in Valeant!

MadVladtheconquerer's picture
MadVladtheconquerer (not verified) Da Nut Job Oct 21, 2015 11:46 AM

Well, somebody is buying.  if the 10:30 ramp doesn't get you, the 11:30 version will.

And if not, then wait until 3:30.  That will sucker punch you.

EUM is actually up today.

Arthur Schopenhauer's picture

Cramer --- "I see the S&P 500 index is down a bit today. I'm so confident Imma make money tomorrow, because today Imma buy this phookin' dip. Lemme see? What company's stock is going down the most today? Imma buy that company's stock. Imma take my scalps tomorrow. Imma even might take'm today. Ya see, Imma wild phookin' Indian. Imma make big bucks, ya phookin' luzers."

csmith's picture

David Pyott (former AGN CEO who called VRX a house of cards) will pick up the pieces of VRX and make a fortune.

Bill of Rights's picture

Dead man walking, we have a dead man walking here....

SheepDog-One's picture

How will Ackman afford his new Ferrari now?

carbonmutant's picture

Pharmaceutical Enron...

rupertDel's picture

Yea, great story for sure...the next Enron.  According to the news reports today, they ship to inventories and call it sales.  I believe Enron did the same type of transaction.

Wait until ETF's start "flash crashing" more often.  

mademesmile's picture

Who did he piss off, God Himself?

DebtSlaveZombie's picture

Yeah, I guess Carl Icahn is pretty pissed...

Da Nut Job's picture

I'm going to bookmark this page so that anytime in the future when I think I'm having a bad day, I can come back and look at this.

SloMoe's picture

Ack, ack, ack-choo!!

arbwhore's picture

Too bad he wasn't shorting the shit out of PMs. Would have made a nice squeeze. Oh well... maybe the next douchebag.

cn13's picture

It doesn't matter how  good a trader someone may be, at some point they will blow up.

It is just a matter of time.

Remember Andrew Hall, the King of Crude Oil?

hotrod's picture

Yet there have been NO big oil busts

venturen's picture

actually like Ackerman....but if you step on the toes of Goldman and JP Morgan...you are dust. The name Lehman, Bear, ML ring any bells? Does Ackerman...have anyone on the FED, ECB, CFTC, BOE, etc? Good Bye So Long it has....

ptoemmes's picture

Honey I Blew Up The Fund