Bill Ackman’s Letter to Investors, Part I: Valeant, Air Products and Short Herbalife Bet

ALEXANDR OLEINIC | May 12, 2016

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It has been known for a while that activist billionaire Bill Ackman had some rough time, as some of his biggest bets are not showing the expected results. In a recent letter to investors, Pershing Square Holdings said that it lost over 25% during the first quarter, but managed to recover slightly last month and following a gain of over 10% registered in April, the fund currently has a negative return of 17% year-to-date. In this way, Pershing’s gross return since inception in 2012 stands at 13.2%, considerably lagging behind major indices. The letter added that the only significant contributor to Pershing’s returns during the first quarter was Air Products & Chemicals, while among the main detractors were Valeant Pharmaceuticals and Mondelez International , followed by Herbalife Ltd. (NYSE:HLF) and Platform Specialty Products Corp (NYSE:PAH). In this article we are going to take a closer look at Bill Ackman’s comments regarding some of his long and short bets.

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