Bill Ackman simultaneously lost $4Billion | 2014

 Bill Ackman simultaneously lost $4Billion, divorced his wife and nearly lost his company. Here’s the unbelievable true story of money, power and a phone call…

In 2014, Bill’s hedge fund Pershing Square Capital Management, L.P. made a significant investment in Valeant Pharmaceuticals, a decision that would prove disastrous. Valeant’s management lost credibility and its stock price plummeted, dragging Bill down with it. This mistake resulted in a staggering $4 billion loss.

As panic set in, investors rushed to withdraw their funds from Bill’s firm. At the same time, Bill was dealing with personal turmoil. He recalled, “I put my divorce on hold. I didn’t want to make a decision in the middle of this crisis.”

Fellow activist investor Elliott Management saw opportunity in the chaos. They started buying stock in Pershing Square while also betting against its portfolio investments. Elliott was pushing for Bill to sell his assets, and would profit from his downfall.

Bill was staring into the abyss.

“I envisioned an end where the divorce takes all my resources, my capital vehicle gets liquidated and another activist in my industry takes my business. I decided I didn’t want things to end this way” he said.

In a high stakes move, Bill urgently secured a $300 million personal loan from JP Morgan and immediately started buying stock in his own company. Lots and lots of stock. One morning after buying another large chunk of Pershing Square stock, Bill received a phone call from a senior manager at Elliott Management:

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