A Bunch of Hedge Funds Got Burned by Valeant

  • The stock already has 22 different holders with a 1% stake
  • Bulls wait for value investors though some are in trouble

From Bill Ackman down, hedge-fund managers piled into Valeant Pharmaceuticals International Inc. like no other stock in North America. After its stunning fall, the question now is who’s left to buy.

Valeant, in many ways, was designed for hedge funds. Cobbled together by veterans of Goldman Sachs Group Inc. and McKinsey & Co., the drugmaker borrowed heavily to buy everything in sight and raised earnings almost 20 percent a year. But as its stock has plummeted 70 percent since August over questions about its business model, the high concentration of big-name stockholders has suddenly become a liability…

A Bunch of Hedge Funds Got Burned by Valeant

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