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Bill Ackmans Brutal Target Losses

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by Felix Salmon
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Apr 02 2008 12:00am EDT

Bill Ackman's Brutal Target Losses

Equity Private, guest-blogging over at Dealbreaker, has the H2 2007 reports from Pershing Square IV, the Bill Ackman hedge fund devoted to going long Target. Which hasn't worked out so well. He lost $52,872,231 on Target stock, which is bad - but he also lost $669,510,931 on Target call options, which is just brutal. And that's just the unrealized losses. There's $40,811,094 in realized losses on the stock, as well as $93,984,727 in realized losses on the options.

Add it all up, and by the end of the year Ackman's fund showed a net loss of almost $853 million, which is a lot of money even by his standards. Still, we're in April now, Target might have recovered a bit since year-end, no? Well, the stock closed the year at $49.87, and it's now at $53.42. Carry on at that rate, and - oh, never mind. Let's go back to MBIA. At least that's still looking good for Ackman.

Update: More from EP.

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