This content is from: Portfolio

The Morning Brief: Bill Ackman's Bad Day

William Ackman’s Pershing Square Capital Management had an especially rough day on Monday, when most major stock markets were down 2 percent or more. For one thing, the New York hedge fund firm’s high-profile short of Herbalife continued to defy gravity and finish in positive territory for the day. Shares of the multi-level marketer of nutrition products rose 1.23 percent, to close at $54.41. Volume was light, though that’s hardly a consolation. Meanwhile, shares of animal health products giant Zoetis fell more than 3 percent. The company is rumored to be discussing a merger with Valeant Pharmaceuticals International, which itself lost 3.75 percent. Zoetis is now down nearly 7 percent since the middle of last week, when the buzz began. Meanwhile, Air Products & Chemicals, whose French operation was the target of a terrorist attack on Friday, fell nearly 3 percent on Monday. Restaurant Brands International, for its part, dropped about 2.6 percent. Canadian Pacific Railway, a long-time winner, also lost money Monday, but fell just 1.23 percent, or less than the overall market — a small victory.
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Tiger Global Management was among a number of high-profile firms that led the $1.5 billion financing of Airbnb. The home-rental service firm is now reportedly valued at $25.5 billion, according to published reports. New York-based Tiger Global has made close to two dozen private investments this quarter alone through its private equity/venture capital arm.
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Credit Suisse raised its price target on Tesla Motors from $290 to $325, telling investors in a note: “We see substantially more upside for the stock.” It adds that “near-term risks surrounding the auto business have been substantially reduced.” The investment bank estimates second quarter deliveries for Tesla’s electric cars to come in between 11,000 and 11,500, much higher than the guidance of 10,000 to 11,000 provided by the company. The stock is the second largest holding of Daniel Benton’s concentrated portfolio at Rye Brook, New York-based Andor Capital Management.
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Viking Global Investors continues to boost its already large health care portfolio. The Greenwich, Connecticut hedge fund firm founded by O. Andreas Halvorsen increased its stake in biopharmaceutical company Esperion Therapeutics nearly 10-fold, to 1.335 million shares, or 5.9 percent of the total outstanding.

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