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Hedge fund Omega sold entire stake in Valeant: Einhorn
November 16, 2015 / 6:24 PM / 2 years ago

Hedge fund Omega sold entire stake in Valeant: Einhorn

NEW YORK (Reuters) - Omega Advisors sold its stake in Valeant Pharmaceuticals International Inc (VRX.TO) in recent weeks after buying more shares during the third quarter, the hedge fund’s vice chairman said on Monday.

Steve Einhorn, Vice chairman at Omega Advisors Inc, speaks at the Reuters Global Investment Summit in Manhattan, New York November 16, 2015. REUTERS/Andrew Kelly

“We are no longer in Valeant,” Steven Einhorn said at the Reuters Global Investment Outlook Summit in New York. “We sold at higher prices.” He did not say exactly when Omega exited its position.

Valeant’s stock price has cratered in the last two months amid questions about the company’s drug pricing and business and accounting practices.

The shares have tumbled 48 percent so far this year and wrecked many hedge funds’ annual performance numbers. William Ackman’s Pershing Square Holdings portfolio, which is one of the top five holders of Valeant, has lost 21 percent this year through Nov. 10.

Hedge funds are required to reveal their third-quarter holdings to the Securities and Exchange Commission on Monday. In that so-called 13-F filing, Omega said it had bought 484,915 shares of Valeant in the third quarter, raising its ownership to roughly 86.5 million shares on Sept. 30.

Speaking more generally, Einhorn, whose firm oversees roughly $8 billion in assets and tends to focus on U.S. stocks, said that the recent decline in healthcare shares offered opportunities for new buying.

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Reporting by Svea Herbst-Bayliss in New York; Editing by Lisa Von Ahn

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