Ackman Boosts Stake In Valeant; Still Appears To Be Passive

Hedge fund billionaire Bill Ackman is increasingly bullish on Valeant Pharmaceuticals Intl Inc VRX.

His firm, Pershing Square, filed a Schedule 13D form with the SEC on Wednesday, disclosing an increase in its exposure to the pharmaceutical company. The fund now owns 19,473,933 shares of Common Stock, which represent 5.7 percent of the shares outstanding.

Earlier this month, Ackman acquired a near-5 percent stake in the company, worth about $3.3 billion.

The new bet makes of Pershing Square the second-largest institutional shareholder of record in the company, only trailing Ruane, Cunniff & Goldfarb, which last disclosed ownership of 34,331,983 shares.

Related Link: Bill Ackman's Pershing Square Takes 5% Stake In Valeant Pharmaceuticals

Reacting to the augmented exposure, Valeant’s stock fell more than 2 percent on Wednesday.

According to Reuters' sources, Pershing Square does not intend to press the management for change, but rather to take a passive approach to the company.

The filing suggests a passive approach too.

The fund only says that it expects to conduct discussions with the company and other relevant parties –- from time to time -- regarding strategic acquisitions or joint ventures. They also add that they “think highly” of Valeant’s management team, strategy, and track record.