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Bill Ackman just cut back on his biggest bet

Mar 17, 2016, 03:10 IST

Flickr/ Szapucki

Bill Ackman, the founder of $12 billion Pershing Square, has sold a big portion of his Mondelez stake.

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Pershing Square sold 20 million shares, and now has a 5.6% stake in the maker of Oreos and Sour Patch Kids, the fund said in an email to investors.

"We are reducing the position size for portfolio management purposes only," Ackman wrote.

Ackman first took a position in Mondelez back in August. He said in the email that Mondelez remains the fund's "largest exposure" even after the sale.

So far this year, shares of Mondelez are down about 7%.

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Here's the email:

According to the fund's latest 13-F filing, Pershing Square owned 43.36 million shares at the end of the fourth quarter, making it the fund's 3rd largest position as a percentage of the portfolio.

Pershing Square lost just over $1 billion (on paper) on his position in Valeant Pharmaceuticals on Tuesday. His losses to date on his Valeant investment are estimated at north of $2.5 billion.

Ackman is the largest hedge fund shareholder of Valeant Pharmaceuticals. The hedge fund owns 30,711,122 shares, or a 9% stake. Last week, Pershing Square added shares to its already money-losing position.

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Pershing Square Holdings is on track for another big losing year. The fund was last down 19.3% as of March 8. The latest performance data comes out tonight.

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