The Sequoia Fund has announced the retirement of co-Manager Bob Goldfarb. The fund has been destroyed by the Valeant debacle. At its peak Valeant made up nearly 1/3 of the long-outperforming fund. Suffice it to say, Sequoia’s performance was adversely impacted by rolling the dice on a Canadian pharma roll-up with suspiciously low R&D and mountains of debt.
Careers of people associated with Valeant are piling up like the Layla scene in Goodfellas. It’s impossible to get out of this flaming hedge fund hotel fast enough. Don’t expect this to be the last victim.
Valeant went from a can’t-miss price rigging model (and possibly some shady accounting) to untouchable leper. Any pol not looking for a way to profit from this meltdown in some way has no ambition whatsoever. Valeant has no friends. It remains quite possibly the Shadiest Company on Earth:
At the center of it all, playing the role of Jimmy, is Mr. William Ackman. No one gets to Ackman, who insists he has a plan to fix all this.
Jimmy goes free. In the movies and real life.