American International Group Inc , under fire from investors to improve its performance, reported a lower-than-expected profit for the third straight quarter as poor returns from hedge funds hurt its investment income. AIG has been scaling back investments in hedge funds, which have borne the brunt of excessive market volatility in the past year. Big-name hedge funds favored by pension funds and the ultra-wealthy for their track record of stellar returns took a battering in the first quarter of 2016, with some posting their worst ever start to a year on record.
By Svea Herbst-Bayliss and Caroline Humer BOSTON/NEW YORK (Reuters) - Billionaire investor William Ackman on Monday mounted a vigorous defense of Valeant Pharmaceuticals , ruling out any sale of the drug company's "crown jewel" assets but saying price cuts and even a new name may be in its future. Ackman, whose Pershing Square Capital Management owns 9 percent of Valeant, predicted the company would turn around with the help of its new chief executive officer and by selling greater volumes of products instead of just raising the price of its drugs. "The company is not a sewer," Ackman said on CNBC television's "Halftime Report," echoing the words Munger used to describe Valeant.