Keeping Tabs on the Damage from a Cratering Valeant

Pershing Square and Paulson & Co. have taken big hits. But savvy stock picking like ValueAct Capital’s can at least limit the damage.

A flurry of announcements Monday morning from Valeant Pharmaceuticals sent its stock surging more than 10 percent when the stock market opened.

Valeant said it has launched a search to replace chief executive officer J. Michael Pearson. In addition, William Ackman, CEO of Pershing Square Capital Management, which owns 9 percent of the shares, is joining the board of directors.

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