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Wednesday, August 6, 2014

Top Fidelity fund managers frowned on Valeant amid Botox bid, (NYSE: AGN)

Two of Fidelity Investments' top stockpickers unloaded most of their holdings in Valeant Pharmaceuticals Inc after the drugmaker in April unveiled its bid for Botox maker Allergan Inc in what is one of 2014's most contentious takeovers. William Danoff, who runs the $106 billion Fidelity Contrafund, a staple in U.S. 401(k) plans, slashed his Valeant position by 83 percent to about 462,000 shares during a two-month period that ended June 30, fund disclosures show.Steven Wymer, who runs the $40 billion Fidelity Growth Company Fund, cut his position in Valeant by 58 percent to about 1.2 million shares in the one-month period that ended June 30, fund disclosures show.So far, it looks like a good move, with Valeant shares down 17 percent since the end of April. Still, Valeant has been a darling with U.S. fund managers because its stock has surged 723 percent over the past five years amid its growth-via-acquisition strategy.Valeant did not rank as a top holding for either fund. But the cuts by some of the country's most successful mutual fund managers reflect concern over Valeant's prospects, fueled most recently when it cut its earnings outlook for 2014 and 2015.

Allergan, Inc. is a multi-specialty health care Company focused on developing and commercializing pharmaceuticals, biologics, medical devices and over-the-counter products. Shares of AGN fell by 1.51% or $-2.39/share to $156.15. In the past year, the shares have traded as low as $86.95 and as high as $174.49. On average, 3000330 shares of AGN exchange hands on a given day and today's volume is recorded at 2745650.