Hedge fund manager, philanthropist and Chief Executive Officer of Pershing Square Capital Management, Ackman is known for his investing acumen. Pershing has lost billions of dollars in its extensive investment into Valeant. Pershing released a statement on Tuesday that it was selling its investment in Valeant altogether in order to regain footing in the market.
"At its current market value, the Valeant position represented 1.5% to 3% of the various Pershing Square funds; however, the investment required a disproportionately large amount of time and resources," read the statement. "As a result, we elected to sell our investment and realize a large tax loss which will enable us to dedicate more time to our other portfolio companies and new investment opportunities. After Bill Ackman and Steve Fraidin joined the Valeant board in March 2016, they worked with their fellow directors to take important steps to stabilize Valeant and position it for the future. Those steps included:
- Replacing senior management with talented executives, including CEO Joe Papa, CFO Paul Herendeen and GC Christina Ackermann;
- Refreshing the board of directors with 10 new members;
- Returning the company to a current and timely filing schedule with the SEC;
- Receiving appropriate amendments and waivers under applicable credit agreements;
- Announcing a strategy to sell non-core assets to improve the company's balance sheet;
- Paying down ~$2.7 billion of net debt with the sale of non-core assets and free cash flow generation; and
- Last week, priced a $3.25 billion bond refinancing and covenant waiver package which extends maturities and reduces the company's exposure to floating interest rates."