In amassing his huge stake, he may have stepped into insider trading territory
If his death threat against Herbalife wasn’t risky enough, Bill Ackman’s recent hook-up with Michael Pearson of Valeant Pharmaceuticals has turned into an even more precarious campaign. It’s Ackman’s first foray – and perhaps the first ever by a hedge fund activist — into 1980’s-style corporate raiding.
For the past several months, Ackman and Pearson have been cooking up an unsolicited — and now hostile — takeover bid for Allergan Inc., the California-based manufacturer of Botox and other cosmetic drugs.
Taking a high-potential start-up to the next level
Angels are investors who finance start-ups after the entrepreneurs have put up their own capital and raised additional funding from so-called friends & family. Angels only invest in new businesses which they believe can return big numbers.
Whose fault is it when your job is to make as much money as possible?
Back in 2008, it certainly looked as if rogue trader Jérôme Kerviel was acting alone.
He had built up derivative positions in the astronomic amount of €50 billion ($68.5 billion) – way beyond his trading limit – and had admittedly concealed them from his employer, Société Générale, by creating fake, offsetting trades in its computer systems.
It all depends on your investment time horizon . . .
Statistically, hedge fund activism was off the charts in 2013. It was the top-performing hedge fund strategy by far and its practitioners won more proxy contests, attracted more capital and targeted bigger fish than ever before.