Who's Lost Billions in Valeant? - Zacks Market Edge Podcast 6 - a podcast by Zacks Investment Research

It’s perfect timing to have Kevin on the show because he’s Zacks’ expert in institutional buying. He tracks their purchases for his Follow the Money Trader. And there’s been no bigger story than what is happening at Valeant (VRX).

Pharmaceutical giant Valeant has been on everyone’s lips for the last several months regarding questions about its drug pricing. It was the subject of a New York Times cover story and there have been subpoenas issued by US prosecutors.

Adding to the injury, the short-selling firm Citron Research came out with a report on the company which slammed the shares further.
Shares are down a whopping 71% in the last 3 months, and went from a new all-time high to a multi-year low in that time span.

Many institutional investors were caught in the Valeant downdraft.
The deadline for the filing of third quarter 13-F forms also just passed which means firms with assets of more than $100 million had to disclose their moves.

Are the institutional investors selling their Valeant positions or buying more?

Who’s in and who’s out?

Sequoia Fund (SEQUX), a prestigious value investment fund which closed to new investors in 2013, is one of the largest shareholders in Valeant. It has over a 10% stake. According to recent filings, it has actually bought even more shares despite losing billions over the last few months on its existing stake.

Outside of Valeant, what else are the top institutional names buying? The 13-F forms revealed that Michael Kors (KORS), Apple (AAPL) and Mobileye (MBLY) are still on their radar.

Should you mimic the buys of the institutional greats? And if so, how do you protect yourself from a Valeant situation?

Join Kevin and Tracey as they discuss the juicy tidbits from the new filings in this week’s podcast.

Valeant: http://www.zacks.com/stock/quote/VRX?cid=cs-soundcloud-ft-pod
Sequoia Fund: http://www.zacks.com/funds/mutual-fund/quote/SEQUX?cid=cs-soundcloud-ft-pod
Michael Kors: http://www.zacks.com/stock/quote/KORS?cid=cs-soundcloud-ft-pod
Apple: http://www.zacks.com/stock/quote/AAPL?cid=cs-soundcloud-ft-pod
Mobileye: http://www.zacks.com/stock/quote/MBLY?cid=cs-soundcloud-ft-pod

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