Last July, Ackman’s efforts to take a 10% stake in Universal Music – which was being spun off by the French media group Vivendi – through his Spac were scuppered by regulatory hurdles. “The rapid recovery of the capital markets and our economy were good for America but unfortunate for PSTH, as it made the conventional IPO market a strong competitor and a preferred alternative for high-quality businesses seeking to go public.” “We launched PSTH in the depths of the pandemic because we believed that the capital markets would likely be impaired from the economic uncertainty created by the pandemic,” he wrote. He flagged numerous factors in the letter, including adverse market conditions and strong competition from traditional initial public offerings (IPOs) that thwarted his efforts to find a suitable company with which to merge his Spac.
"Importantly, our hedge had already paid off prior to my going on CNBC.It is a significant blow to the billionaire, who had planned for the investment vehicle to take a stake in Universal Music Group last year when there was a Spac craze on Wall Street. The billionaire defended himself in a statement to Pershing Square investors, writing that "By Wednesday, March 18th at 12:30 p.m., when I appeared on CNBC, we had already sold slightly more than half of the notional amount of our CDS, realizing a gain of more than $1.3 billion, with the unrealized portion of our hedge having a market value at that time of $1.3 billion for a total of $2.6 billion," Ackman wrote in a press release. Markets plunged so sharply that the market hit a so-called circuit breaker, halting trading for 15 minutes, Markets Insider reported. Ackman's comments sent the already volatile market down, prompting accusations from various news outlets and on social media that Ackman went on television with the intent of making his bet against the market more profitable, Forbes reported. The losses put the hedge fund into what Bloomberg called a "three-year losing streak" in 2019.Īckman made an appearance on CNBC on March 18, proclaiming that "hell is coming" because of the outbreak, after tweeting similar sentiments earlier in the day. Pershing Square also lost money on bets on now-defunct bookseller Border's Group and big-box retailer Target Corporation, according to Investopedia. Valeant has since been renamed Bausch Health. Ackman lost hundreds of millions of dollars on Herbalife, Business Insider reported.Īckman also made a controversial investment in near-bankrupt drugmaker Valeant Pharmaceuticals that resulted in a contentious Senate hearing over Valeant's practice of buying existing drugs and selling them at inflated prices in 2016, Business Insider reported at the time. Icahn and Ackman got into a public fight over the company's prospects that was called "the hedge fund equivalent of Stalingrad" by The Journal, with Icahn eventually emerging victorious. Ackman publicly accused Herbalife of being a pyramid scheme whose stock price was bound to hit zero, according to The Wall Street Journal. Ackman bet $1 billion that the company would fail, while fellow billionaire investor Carl Icahn made a long-term investment in the company, Business Insider previously reported. It often indicates a user profile.Īckman's 2012 short against multilevel marketing supplement maker Herbalife was one of the most high-profile missteps of his career, according to Investopedia. Account icon An icon in the shape of a person's head and shoulders.
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