New York (HedgeCo.net) – Valeant Pharmaceuticals (NYSE: VRX) tumbled almost 28% in yesterday’s trading action and that extended the drop in the stock price by almost 60% since its peak in early August. Yesterday’s decline came about as the result of a report from short-selling specialist Citron Research published a report comparing the company to Enron.

According to an article from Business Insider, Valeant was listed as the tenth stock that matter most to hedge funds according to Goldman Sachs and stated that 32 different hedge funds held the stock as one of their top-10 holdings.

Among the hedge funds holding Valeant stock are Pershing Square, ValueAct Holdings, Paulson and Co., Lone Pine Capital and Viking Global. Yet another article from Bloomberg listed Ruane, Cunniff & Goldfarb as the largest investor in Valeant as of June 30 and estimated the firm’s loss of $4.9 billion, at least on paper. Bloomberg estimated the loss for Pershing Square at $2.8 billion.

Rick Pendergraft
Research Analyst
HedgeCoVest