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"There is a huge amount of money that moves without regard to
long-term economic fundamentals," said Ackman at a Bloomberg
investor conference in New York. Ackman added that the
volatility was creating opportunities for long-term fundamental
investors looking to pick up undervalued stocks.
Ackman cited leveraged exchange traded funds, or ETFs,
high-frequency trading and other types of leveraged strategies
as factors that have contributed to market volatility. That has
compounded investors' fears and led to more selling in markets,
he said.
Pershing Square Holdings fund is nursing a 12.6 percent loss for
2015, an investor who received Ackman's investment letter said
last week, marking a dramatic reversal of fortune for one of
last year's best performing managers.
Shares in Valeant Pharmaceuticals, one of Ackaman's largest
holdings, tumbled after Democratic lawmakers attacked "massive"
price increases of two heart drugs by the company, fueling a
rout in drugmaker shares on worries of a government and insurer
clampdown on U.S. drug prices.
Ackman said the comments had not changed his view on the sector.
However, while he believed Valeant was the most undervalued
stock in his top holding his fund had not been adding to its
position in the company.
Ackman also weighed in on politics, saying he believes Michael
Bloomberg, a three-time mayor of New York and founder of the
financial news and data company Bloomberg, would run for
president in 2016 and win.
"I would do everything in my power to get this guy elected,"
Ackman said. "I think the stock market would be up 5 percent the
day he announced and 10 percent when he wins."
(Reporting by Edward Krudy; Editing by Meredith Mazzilli and
David Gregorio)
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