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Maybe Bill Ackman should not have invested such a high percent of his hedge fund into a un-ethical price-gouging pharmaceutical company (Valeant).
by randomfool 11y ago
Maybe Bill Ackman should not have invested such a high percent of his hedge fund into a un-ethical price-gouging pharmaceutical company (Valeant).
- tristanj 11y agoThat's not a fair criticism. At the time they invested, Valeant posted impressive financials with strong growth potential. Investors had no clue about the fraud occurring within the company. It was very rational to invest at that time. I don't think it's fair to say it's his fault for believing someone else's fraud.
- randomname2 11y agoHe doubled down on Valeant when the fraud came to light.
- hkmurakami 11y agoReminds me of AIG. Looked great on paper until the stuff off the books came to light.
- momavujisic 11y agoYet Ackman argues that index funds are destroying his and hedge fund's abilities to better govern a company. I guess the fraud was the fault of those darn index funds!
- randomfool 11y agoNot all thought so- http://www.bloomberg.com/news/articles/2015-11-01/munger-isn-t-done-bashing-valeant-after-months-of-holding-nose http://www.bloomberg.com/news/articles/2015-11-01/munger-isn... The fraud is not so much my concern- it's the unethical business plan. Valeant is just a watered down Turing Pharma. All the while Ackman continued to grow his position.
- mseebach 11y agoOne of the things hedge funds do to justify their high management fees, is to research the companies they invest in very deeply, definitely deeper than looking at financials, often meeting with management.
- dsr_ 11y agoA dozen or so years ago I got a call from what turned out to be Michael Dell's wealth managers. They wanted to interview me about my recent ex-employer. Clearly their research goes much deeper than reading over the 10Q forms and annual reports.