One stock helped decimate billionaire Bill Ackman's hedge fund performance

Billionaire Bill Ackman just announced that he has sold out of his hedge fund’s Valeant stock holding, a position that has cost the fund dearly.

Ackman’s firm, Pershing Square Capital, invested in Valeant two years ago. Later that year, the drugmaker started to run into a spate of problems that wiped more than 90% off of its market value. Reuters estimated that the investment caused Ackman to suffer roughly $US3 billion in losses.

Here’s how Pershing Square has done in the years since investing in Valeant, based on data from the firm’s publicly traded vehicle, which serves as a proxy for its flagship hedge fund:

  • YTD 2017 through March 7: -1.5%
  • 2016: -13.5%
  • 2015: -20.5%

Here’s Valeant’s performance:

  • YTD 2017 through March 7: -19%
  • 2016: -85.7%
  • 2015: -29%

Meanwhile, over the past several months, the S&P 500 has been ripping higher:

  • YTD 2017 through March 7:6%
  • 2016: 9.5%
  • 2015: -0.73%

NOW WATCH: A leading economist explains why bitcoin isn’t money

NOW WATCH: Money & Markets videos

Want to read a more in-depth view on the trends influencing Australian business and the global economy? BI / Research is designed to help executives and industry leaders understand the major challenges and opportunities for industry, technology, strategy and the economy in the future. Sign up for free at research.businessinsider.com.au.