A hedge fund hotel is generally defined as a company with an unusually concentrated group of shareholders.
Valeant is more like the Ravenite Social Club. The stock routinely trades lower ahead of bad news, the CEO comes and goes and results have been restated, adjusted or simply retracted 3 times in the last few weeks.
Why would a self-described “value-based” mutual fund, one with roots to Warren Buffett, keep more than 20% of its assets in any stock, let alone a shifty Pharma roll-up dumpster like Valeant? What the hell is Ackman doing with such a huge portion of Pershing Sq in this mess? How is Paulson still a billionaire?
I can’t answer any of that. No idea. I only know two things: 1) this whole thing stinks 2) I wouldn’t touch this stock with anything I wasn’t willing to burn
