William Ackman’s Hedge Fund Sheds Stake in Netflix

Billionaire investor William Ackman said his hedge fund sold its stake in Netflix Inc. on Wednesday, implying a loss of about $400 million, as the shares recorded their biggest one-day drop since 2004.

Mr. Ackman said his fund Pershing Square has “lost confidence in our ability to predict the company’s future prospects.” He said he sought to “act promptly” as he discovered new information about the investment that didn’t jive with his original thesis.