Bill Ackman’s Pershing Square Capital, got pounded in September. The hedge fund was the best-performing last year, returning 40.4%.
Last month the fund’s publicly traded vehicle, fell 12.5% for the first nine months of the year, according to a performance update.
Ackman was dragged down by the fund’s large stake in Valeant Pharmaceuticals. Pershing Square bought earlier this year 19, 473, 933 Valeant shares, or an approximately 5.7% stake and become the third-largest shareholder.
Things have changed as shares of Valeant fell by more than 22% after the Democrats on the House Oversight and Government Reform Committee sent a letter to the committee’s chairman, Jason Chaffetz.
They asking him to subpoena the Canadian pharmaceutical company for documents related to price increases of acquired drugs.