At least one money manager isn’t buying Bill Ackman’s claims to have cleaned up the situation at Valeant (VRX.TO), the troubled pharmaceutical company.

“I personally think this is perhaps Bill Ackman’s Waterloo,” Thomas George, portfolio manager, TD Precious Metals and Resources Funds told BNN.

The value of Pershing Square holdings has plunged more than 25 per cent in the first quarter of this year – much of that as a result of the investment firm’s stake in Valeant, Ackman said in a letter to shareholders released on Wednesday.

Shares of Valeant have fallen sharply as the former stock market darling has been attacked by short-sellers and regulators over the company’s controversial accounting practices, questionable pricing tactics and meagre research and development spending.

The controversy led to the replacement of Valeant CEO Michael Pearson with Joe Papa – a respected pharmaceutical executive.

“We believe that Joe is an ideal choice for Valeant as he has extensive senior leadership experience in all aspects of the pharmaceutical industry, a strong reputation for integrity, and an excellent track record,” Ackman wrote.

But that’s not enough for some, says George. “I hate to use the phrase but (Ackman) is trying to put lipstick on a very unattractive animal.”

Ackman acknowledged Valeant has a long road back into investors’ good graces.

“It will take time for Valeant to regain its stakeholders’ trust. We believe that this will occur over time as the company delivers several new quarters of results and continues to fulfill its commitments to shareholders, patients, doctors, and the community at large.”