Sachem Head's Ferguson Said to Recommend Akorn, Could Double

  • Shares of eye-care product maker rise after manager's comments
  • Ferguson made comments at Robin Hood investors conference

Scott Ferguson, the money manager who runs Sachem Head Capital Management, recommended buying shares of Akorn Inc., a maker of generic eye-care products, according to people familiar with the matter.

Ferguson, who spoke at the Robin Hood Investors Conference Monday, said shares of the company could double in two years, said one of the people, who asked not to be named because the conference isn’t open to the press. The hedge fund manager said the company could be a takeover target for generic drugmaker Mylan NV, which is based in the Netherlands and run from Canonsburg, Pennsylvania, or Perrigo Co., which is domiciled in Dublin, Ireland, for tax purposes, another person said.

Shares of the Lake Forest, Illinois-based Akorn jumped 3.1 percent to $29.45 at 11:10 a.m. in New York, paring the year’s loss to 19 percent.

"We’re excited that Scott shares the same enthusiasm for the company as we long have had and we welcome Sachem Head as an important shareholder," said Dewey Steadman, executive director of investor relations at Akorn.

Ferguson was the first analyst Bill Ackman hired when he started Pershing Square Capital Management. He worked at Pershing Square for eight years before leaving in 2012 to start Sachem Head, which specializes in making concentrated bets on and against stocks.

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