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Bill Ackman Is Down 19% In 2015 Following 7.3% Loss In October On Valeant Plunge

Tyler Durden's picture




 

First the good news for Bill Ackman: as of October 31, it appears that Pershing Square has not had a spike in redemption requests (or if it has, it hasn't granted them yet). We know this because as of October 31, Pershing Square's AUM was $15.1 billion.

 

This is down from $16.5 billion the month before. This means that the $1.4 billion drop in AUM is largely accounted for by the $75 or so drop in Valeant shares during the month of October (of which Ackman owned about 20 million for most of the month) and that there has been little additional changes to Pershing's portfolio.

The bad news is that at $15.1 billion, this is the lowest AUM for Bill Ackman in over a year...

 

... and his current net performance for October and YTD is a deplorable -7.3%, and -19.0% respectively.

And yet if this collapse in Pershing's return YTD on the back of just one stock (memories of PS IV and Target come to mind) is enough to lead to the overdue unwinding of his hedge fund, we doubt the billionaire hedge funder will lose much sleep. He is largely set for life.

However, we can't say the same for those unlucky souls who invested in the stock of Dutch-listed stock of Pershing Square hodlings, which recently hit its all time low, and which - if the fund is unwound - will likely proceed to likewise liquidate on short notice. 

 

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Mon, 11/02/2015 - 23:56 | 6742768 Glass Seagull
Glass Seagull's picture

 

 

So smug, these observers of the plights of men in the arena.

Tue, 11/03/2015 - 00:00 | 6742779 Wild Theories
Wild Theories's picture

is that you, Bill?

Tue, 11/03/2015 - 00:16 | 6742811 Mr Poopra
Mr Poopra's picture

The repurcussions of having your money in the hands of an "activist investor".

Bill Ackman is one of those people that are so smart that he's actually an idiot.

Tue, 11/03/2015 - 00:50 | 6742879 Keyser
Keyser's picture

If Bill keeps this up, he will soon attain the success level of Jim Cramer... 

Tue, 11/03/2015 - 00:02 | 6742786 Colonel Klink
Colonel Klink's picture

Hahahahahahaha!  That is all.

Tue, 11/03/2015 - 00:05 | 6742794 Osmium
Osmium's picture

Doesn't he know he's just supposed to BTFD?

Tue, 11/03/2015 - 00:14 | 6742815 cigarEngineer
cigarEngineer's picture

29 to 20. down 50% in 3 months.

Tue, 11/03/2015 - 00:15 | 6742818 Uncle Sugar
Uncle Sugar's picture

He doesn't care. It's not his money.

Tue, 11/03/2015 - 05:44 | 6743141 mrdenis
mrdenis's picture

And he still gets paid ..........with your money 

Tue, 11/03/2015 - 00:24 | 6742820 One And Only
One And Only's picture

I am not a Bill Ackman fan but I would be remiss if I did not bring up the fact that many people have blown up corporations and hedge funds and turn around and start a new fund or become CEO somewhere else. The list is long but I'll name a couple:

John Meriwether - Was part of the Saloman Brothers blow up moves on to blow up LTCM then moved on to blow up JWM partners and tried to start a new fund JM advisors that actually was able to somehow raise $28 million but the fund never launched to my knowledge. He finally through in the towel to get into horse racing.

John Thain - Oversaw the implosion of Merril Lynch blows up Merril Lynch and ends up as the Chairman and CEO of CIT.

There's a ton of others but I'm not doing this all night. But I have been short Valeant with one of the reasons being when Ackman liquidates the 22 million shares he has will have to be sold to someone and who will be the buyer with their business model in question (due to regulation of price gauging medicine), looming federal investigation, and completely tarnished reputation?

Tue, 11/03/2015 - 00:18 | 6742827 Fish Gone Bad
Fish Gone Bad's picture

Buy and hold has really worked out nicely.

Tue, 11/03/2015 - 02:04 | 6742977 yomutti
yomutti's picture

Yeah, his recent performance has sucked. Nevertheless, he's a billionaire, and you're not.

 

Tue, 11/03/2015 - 04:19 | 6743084 tc06rtw
tc06rtw's picture

   
 …  there’s a lot of
   billionaires in Zimbabwe.

Tue, 11/03/2015 - 07:41 | 6743208 3rdWorldTrillionaire
3rdWorldTrillionaire's picture

Ahem... trillionaires.

Tue, 11/03/2015 - 03:57 | 6743070 Bay of Pigs
Bay of Pigs's picture

If anyone watched the research guy from Citron today he wouldnt feel sorry for Ackman or anyone else.

Valeant is a joke. The dude completely ripped the face off the BlowHorn interviwer. It was classic.

Tue, 11/03/2015 - 10:05 | 6743508 venturen
venturen's picture

Valeant has a Goldman accomplice....nothing else matters.

Tue, 11/03/2015 - 08:40 | 6743275 Brokenarrow
Brokenarrow's picture

"gated" you can bet he collected his unrealized gains fee this year twice.

 

i wonder if pensions know just how big a rip off these funds are?

Tue, 11/03/2015 - 10:04 | 6743504 venturen
venturen's picture

what the heck do they care....pension fund managers want the trips and dinners....they get paid decent salaries. The bankers/Hedgies play them for fools everyday! 

Tue, 11/03/2015 - 10:02 | 6743498 venturen
venturen's picture

I believe Ackerman must have called Blankfein a Cue Ball...and is being punished accordingly.

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