Bill Ackman declared early on that Pershing Square Capital could make "15 times its money" if Ron Johnson's turnaround plans succeeded. It is estimated that the current paper losses for the hedge fund are almost half a billion dollars. Ackman's multiyear bet on the J.C. Penney turnaround may prove to be one of his costliest blunders ever. With his reputation tarnished and the hedge fund losses mounting while short sellers exploit the debacle, Ackman most likely is looking for an exit strategy. The thought of putting the J.C. Penney investment in a side pocket at Pershing Square is unlikely (side pockets are often used at hedge funds to place poor performing investments).