Billionaire investor William Ackman’s portfolios climbed nearly 6% in August, boosted by strong gains at drug company Valeant Pharmaceuticals International where changes that the hedge fund manager has helped push for appear to be instilling new confidence.
Pershing Square Holdings, one of the hedge fund’s portfolios, climbed 5.8% last month, shrinking its loss for the year to 14.3%, an investor in the fund said. In March the fund had been down 25.6%.
Valeant (VRX) gained roughly 39% in the last month.
A year ago, Valeant’s stock began cratering amid questions about the company’s business and accounting practices and its stock price is still down 87% in the last 52 weeks. In the last few weeks, it began recovering as the company’s new chief executive officer eased worries about a possible default and the company hired a new chief legal officer and chief financial officer.
Similarly bets on quick service restaurant company Restaurant Brands International and snack food maker Mondelez proved helpful.
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Other hedge funds also told their clients that they scored gains in August. Jana Partners, an activist fund like Ackman’s Pershing Square, was up 1% in August, shrinking its year to date loss to 3%, an investor in the fund said.
Citadel’s Wellington fund gained 2.4% in August and is now up 0.5% for the year, a person familiar with the figures said.