Here we go again.  If you were active in the markets during the financial crisis, you likely remember that whenever rumors of a hedge fund coming under pressure surfaced due to a large loss in a major holding, traders would start shorting the stocks of other companies in the fund’s portfolio.  With shares of Valeant (VRX) down as much as 40% today, it looks like we are seeing that process play out again with one of the company’s largest holders, Pershing Square.

The table below lists the long equity holdings of Pershing Square as of the end of Q2 based on their quarterly filing.  First, an important caveat.  This information is almost four months old, and the quarterly filings don’t include any possible hedges that the fund is holding to offset those longs.  Nevertheless, a look at Pershing Square’s top holdings shows that all of them are down on the day with some of them down over 4%.  This all comes on a day when the S&P 500 is down just 0.4%.

Pershing Square

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