Published On: Thu, Aug 14th, 2014

Perry Capital Buys Shares of Ally Financial and Allergan and Sells Herbalife

herbalife

Perry Capital, a $10.9 billion hedge fund under the management of Richard Perry, has bought shares of auto-lender Ally Financial (ALLY) and Allergan (AGN) and has sold some shares of Herbalife (HLF).

Perry bought 14.3 million shares of Ally, valued at $341.2 million. It is now Perry’s second largest holding after AIG (AIG). Ally struggled during the financial crisis, and had to receive a bailout from the government. The Treasury still owns 16% of Ally, which raised $2.6 billion in its IPO in the second quarter. The stock has dropped 6.2% since its IPO.

Allergan and Herbalife are two “battleground” stocks with heavy involvement from hedge-fund manager Bill Ackman, who has been behind a hostile takeover bid for Allergan by Valeant and an attempt to drive Herbalife out of business. Ackman has been criticized for using investor activism as a way of supporting his positions in the stocks, and while his short position in Herbalife has lost money, he continues to call for investigations into Herbalife’s multi-level marketing business model, which he considers fraudulent.

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