The Anti-Ackman: Valeant Short Sellers Have Made $2.8 Billion
- Traders who shorted after August 2015 record have benefited
- Bill Ackman unloaded his stake in the drugmaker this week
Why Ackman's Valeant Trade Turned Into a Bust
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Valeant Pharmaceuticals International Inc.’s rout in the past 18 months famously drained $4 billion from Bill Ackman’s portfolio. For short sellers, it’s been nothing short of a boon.
Traders who borrowed the stock in hopes that it would retreat made as much as $2.8 billion in profit since Valeant’s peak in August 2015, according to data compiled by financial analytics firm S3 Partners LLC. The drugmaker’s stock has carried average short interest of about $800 million in that period -- bets that, if timed perfectly, would have returned 343 percent.