Ackman is 'profoundly' sorry for US$4b Valeant 'mistake'

New York

BILL Ackman "deeply and profoundly" apologised for his investment in Valeant Pharmaceuticals International Inc, a "huge mistake" that cost his firm US$4 billion.

In his annual letter to investors in his publicly traded fund Pershing Square Holdings Ltd, Mr Ackman in part blamed Valeant's overpaying for Salix Pharmaceuticals in 2015 for the drugmaker's downfall. But he also took blame for misjudging the company's management and its aggressive strategy.

"Clearly, our investment in Valeant was a huge mistake," the money manager wrote in the letter. "We deeply regret this mistake, which has cost all of us a tremendous amount, and which has damaged the record of success of our firm."

That error has cost him dearly as Valeant's stock lost more than 95 per cent of its value since an August 2015 peak. On March 13, Mr Ackman's activist hedge fund Pershing Square Capital Management said that it had shed its stake, taking about US$4 billion in losses. The investment was the biggest contributor to Pershing Square Holdings' 13.5 per cent loss in 2016 and 20.5 percent loss in 2015 - a reversal of fortunes from its 40.4 per cent gain i…