mr. ackman involving the litigation arising from the original allergin bid. great investments. this perhaps the worst. but the vehicle to acquire target shares many years ago did not do well. we all know what happened to jcpenney when he put ron johnson in the job there. that stock plummeted, as well. borders, that deal didn't do well either for him. a checkered track record. >> i think even bill would go along with that. >>> when we come back, cbo scorecard. a new report says the gop health care plan could cut the deficit but may add millions to the uninsured. >>> the fed kicking off the two-day meeting. the rate hike a near certainty. doe is down 41. kevin kevin kevin kevin kevin kevin kevin kevin kevin kevin trusted advice for life. kevin, how's your mom? life well planned. see what a raymond james financial advisor can do for you. we cut the price of trades to give investors even more value. and at $4.95, you can trade with a clear advantage. fidelity, where smarter investors will always be. and at $4.95, you can trade with a clear advantage. i'm vern, th

mr. ackman.urse, he came into valeant as a result of his partnership with the company in its bid to buy allergen. he bought a great deal of allergen stock as part of the group associated with valeant. then they failed ultimately to succeed in acquiring allergen which was eventually bought by active vit activeis to become currently what is still allergen. what did mr. ackman do? well, he actually turned around and bought a very significant stake in valeant, became very much involved in that company with its former ceo and very much involved in the restructuring of the company. went on the board of which he's now going to be stepping off. was involved in the hiring of joe poppa, the company's current ceo, and this chapter has now come to an end, kelly, for mr. ackman. he received a great deal of attention about it. one might imagine it might be taking up a good deal of his time. as a result of purchasing of his assets given a fall in the stock price, this was not a significant or meaningful positio

mr. ackman is selling it, he knows what's under the hood.ebt, it would be bankruptcy. >> the thesis was that this was going to be a mini valley dlaent. are you still in that short? >> just looking at it. raising prices and taking on debt. >> tough to be a short sale. you didn't see it coming. the deal with intel is buying mobile eye. what was it like to walk in and get the news that you had just been blown out of a short like that? >> well, first let's put it in perspective. when i first discussed mobile eye, it was close to two years ago. the stock is up 30% from when i first discussed it. meanwhile, the semi conductor index is up 60%. it is not like i bought it at 220 and it is now 10. your intro said big troubles. it is not exactly big troubles. that being said when i woke up zmorng put my cnbc app on my phone and saw mobile eye, i thought maybe my phone was broken. i think the insiders expected it a few years ago. over the past two years, insiders have sold close the $2 billion worth of stock at an average price of 35. i don't think it w

mr. ackman's holdings. republican lawmakers plans to repeal and replace obamacare.ue of tax reform has taken a backseat but it is next on the trump administration's agenda. one of the key features of the plan proposed by paul ryan is the border adjustment tax. it would cut corporate taxes 25%.5% to emma chandra spoke with alan auerbach, the director of the university of california's tax policy center. he is known as the father of the border adjustment tax. thinks thisise the best way to tackle the u.s. corporate tax code. >> we have seen the alternatives not work and really by process of elimination, in my view, this is the only way it can work. it works through a variety of channels. itst of all, it makes impossible for multinational companies to shift their profits to low tax countries because of the border adjustments. it encourages companies to locate reduction in the u.s. because the tax is based on where products are sold and not where they are produced. flowith a move to cash taxation from our current system of income taxation, it would make the tax system mu

mr. ackman probably could have hedged and lost 5% or 10% on this trade, rather than 95% and that would have been a much smarter trade. but it's hindsight at this point. >> carrie, for those managing their own money and own portfolios and many viewers do that for them selves. we had conversations as to whether people are better off managing their own money than putting it with somebody else who may not perform as well. this really is a lesson in not only risk, but emotion when it comes to trading. a stock that was up at 263 and now it comes all the way down to 11 with an investor falling so far in love with a company's model and its ceo and here we find ourselves. >> well, you know, it's easy, of course, to take shots at bill ackman because of this trade. i apologize for my voice. it's the blizzard outside. but, remember, this is one trade among many and he has made a lot of money for his investors who are sophisticated investors. the average person doesn't take $10,000 from their 401(k) plan and give it to purshing square. that is not happening. these are people who have a lot of money and

with ackman back in -- >> bill mueller. >> he said, listen -- >> i don't -- snrs. >> sequoia. >> i didn't know. i'm saying those kind of losses -- hard to come back. >> when you do fall in love mr can school you. >> i love ackman coming on tv but in retrospect one of the things he did well was tell us all how smart he was. >> jim, thanks. >> by the way, 12th anniversary for "mad money". >> 12th anniversary. an odd one, yeah. we'll do a little -- something at the beginning but, yeah, i mean it's an odd number. just -- >> hold on. we did something. >> what? >> for you. a little montage of the places you've been over the years. >> welcome to the heart of american manufacturing. coming to you from the ford f150 plant in dearborn, michigan. who says we don't make anything anymore? "mad money" is boots on the ground in the badlands to show you how home grown and innovation and technology have opened up one of other biggest oil discoveries. >> all about america. >> "mad money" is in the heart of steel country to show you how the biggest oil and gas discover irys in a decade are putting a fire back under an industry left for dead. >> we're on the mississippi river, louisiana talking jo

ackman stepped on the board. he helped find joe papa to replace mr. pearson. dave, do we know -- clearly he was able to take fees when the fund was up back in 2014. now that he's realized this loss, do we know how under water he is and what the high water mark is in terms of his ability to take fees in the future? he clearly does have permanent capital. it's not like this fund is going out of business any time soon. >> it's not. >> there is a question about the economics of this fund for everybody who works there. >> there are. and of course you raise the idea of the high water mark, which tells the investor i will not take the 20% of any upside until i get you back to even on your original invest pmt. the question is who pulled and who didn't. i don't know overall what it looks like for him across the entire group of funds that he manages. but one would imagine that if you're down 20 and then down 13 on top of that, you're going to have a difficult time getting back to even. as you point out, it can make it more difficult to pay some of your people as well. h

ackman at valeant, buffett at walmart a few months ago, today reuters saying starboard at macy's. >> i defer to you, mraus of macy's. >> yeah, not a good performance there for starboard macy's. of course they initiated that position not along before jim and i did a panel in which jeff smith came for delivering alpha. >> yeah. >> they didn't deliver any alpha. stock went up after that of course. they were pushing for a significant split of the company, trying to monetize and realize a lot of the value in its real estate. that has not really happened though macy's hired a very capable guy to run real estate and to do certain things. they didn't get obviously what they were really looking for, which was the big kahuna of the 34th street location and what you conceivably could do there and how you could -- they're not engaged in any talks with hudson bay, which has moved onto try to see what it can figure out in terms of structure with neiman marcus who knows, but yeah, that was bad. >> that was what? >> that was a bad investment. >> yes, bad. >> activists make plenty of bad ones. comes back to stock picki