2016 was a tough year for Bill Ackman. In addition to his financial woes, Ackman just turned 50.
The two biggest mistakes that Bill Ackman made recently were his attempt to short Herbalife and his investment is Valeant Pharmaceuticals International.
He shorted Herbalife because he believes that it is nothing more than a pyramid scheme and still hopes that the company will face some sort of government action against it. But so far the company’s stock has risen and not fallen.
And in that mess Ackman has been up against fellow activist investor Carl Ichan.
According to a special report on Ackman in The New York Times, Pershing Square is now down to only $11.6 billion in assets from as much as $18.5 billion at the start of 2015. It has lost 21% of its value this year alone. The firm is still above water mainly because investors must wait at least two years to pull out their funds.
Bill Ackman is betting big on Chipotle Mexican Grill Inc. This in spite of the fact that the fast food chain has recently been the butt of many a late night talk show host’s jokes resulting from all of the incidents of food poisoning which were reported by its patrons.
Bill Ackman is betting that Valeant will soon turn around now that its legal woes have passed. You don’t get to be a billionaire investor without taking risks and Bill Ackman is certainly not risk averse.