WASHINGTON (dpa-AFX) - Activist investor Bill Ackman's hedge fund Pershing Square Capital Management L.P. is cutting ten employees from its workforce, according to media reports, citing people with knowledge of the matter.
The job cuts on Friday have reportedly brought the New York-based company's head count down to 46 and were mostly in the hedge fund's back-office and support staff.
The job cuts were first reported by Reuters, revealing that the laid-off employees include Ackman's driver and one investment professional.
The layoffs comes after the now $9 billion hedge fund suffered three straight years of losses despite a rally in the broader markets.
Pershing Square stated 2015 with more than $18 billion in assets under management, but has suffered huge losses on its investments in drug maker Valeant Pharmaceuticals Inc. (VRX, VRX.TO) and nutritional supplements maker Herbalife Ltd (HLF).
In his annual letter to Pershing Square shareholders last March, Ackman admitted that the investment in Valeant Pharmaceuticals was a huge mistake. He noted that the decision cost a tremendous amount and damaged the hedge fund's record of success.
Pershing Square's net returns fell 20.5 percent in 2015 and 13.5 percent in 2016, even as the S&P 500 Index gained 1.4 percent and 11.9 percent respectively. In 2017, Pershing Square lost 4 percent while the S&P 500 gained 21.8 percent.
Ackman is now reportedly planning to spend more time focusing on the hedge fund's investment strategy, while partner Ben Hakim will meet with investors.
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