Restricted Trading
Pershing Square was “largely restricted from trading during this period” due to knowledge of a potential large transaction that Valeant was working on, Ackman wrote.
“In retrospect, in light of Valeant’s leverage and the regulatory and political sensitivity of its underlying business, we should have avoided becoming restricted to preserve trading flexibility” or held a smaller position, he said.
Pershing Square, based in New York, often buys large stakes in companies that it sees as undervalued, and then sometimes pushes for changes by the management or board to boost returns. In October 2014, the public fund began trading in Amsterdam with the same portfolio as the hedge fund.