New York-based Pershing Square Capital Management’s flagship fund dropped 0.6% in March.
The Wall Street Journal reported that the hedge fund’s negative performance last month was attributed to declines in the shares of government-controlled mortgage companies Fannie Mae and Freddie Mac. Pershing Square, which owns nearly 10% in Fannie and Freddie, plans to stick with the wager.
On the flipside, negative developments at nutritional supplement maker Herbalife helped the firm, which bet that its shares will decline.
Pershing Square founder and CEO Bill Ackman made headlines recently when it accused Herbalife of carrying illegal operations in China. The hedge fund manager also revealed in 2012 that he was shorting Herbalife, calling it a “pyramid scheme” and criticized the company for inflating the suggested retail price of its products and overstating its retail sales in public filings. Herbalife shares plummeted nearly 15% as a result.
Founded in 2004, Pershing Square manages $13.1 billion.