Billionaires Are Turning Away from These Five Stocks

#2 Valeant Pharmaceuticals Intl Inc. (NYSE:VRX)

– Billionaires with long positions as of March 31: 8

– Aggregate value of billionaires’ holdings as of March 31: $1.52 Billion

Unsurprisingly, the number of billionaires’ funds followed by our team invested in Valeant Pharmaceuticals Intl Inc. (NYSE:VRX) fell to eight from 12 during the March quarter, while the aggregate value of those billionaires’ equity investments in the Canadian drug maker plunged by 76% quarter-on-quarter to $1.52 billion. The plunge was mostly attributable to the 74% decline in the value of Valeant shares. Although the embattled drug market does not seem to be making headlines on a daily basis, Valeant continues to be among the most discussed and followed stocks. It may be hard to believe that Valeant shares were trading above $263 in August 2015, as the stock currently trades in mid-$20’s. The company has a really bumpy road ahead despite having made significant leadership and boardroom changes, with some possible moves likely to involve divesting some businesses to reduce the heavy debt load of more than $30 billion. Bill Ackman’s Pershing Square Capital Management, the hedge fund hurt the most by the drug maker’s freefall, owned 21.59 million shares of Valeant Pharmaceuticals Intl Inc. (NYSE:VRX) at the end of the first quarter.

#1 United Continental Holdings Inc. (NYSE:UAL)

– Billionaires with long positions as of March 31: 6

– Aggregate value of billionaires’ holdings as of March 31: $590.55 Million

There were six billionaires with long positions in United Continental Holdings Inc. (NYSE:UAL) at the end of the first quarter, down from 10 registered at the end of the final quarter of 2015. Meanwhile, the dollar value of all those positions dropped by 20% quarter-over-quarter to $590.55 million, despite the stock having gained 4% during the quarter. The Chicago-based carrier’s performance has been impacted lately by worries over terrorism after the horrible attacks in Paris and Brussels in the not-so-distant future. The recent shooting at a club in Orlando and a bombing at Shanghai’s main international airport have put even more pressure on the overall airline sector, United Continental was no exception. Investors and airlines are worried that overall passenger demand is not growing at the rate industry capacity grows, as United Continental’s fresh data shows that consolidated traffic is indeed slowing. The shares of the airline are down 26% so far in 2016. Brad Gerstner’s Altimeter Capital Management owns 11.51 million shares of United Continental Holdings Inc. (NYSE:UAL) as of March 31.

Disclosure: None