pershing square holdings ltd in a letter to shareholders said wednesday it sold its investment in netflix inc the company said it had high regard for netflixs management but added in light of the enormous operating leverage inherent in the companys business model changes in the companys future subscriber growth can have an outsized impact on our estimate of intrinsic value pershing square said planned changes by netflix including incorporating advertising and being more aggressive in going after nonpaying customers while sensible make it difficult to predict their impact on the company we require a high degree of predictability in the businesses in which we invest due to the highly concentrated nature of our portfolio pershing square said it also said while netflixs business is fundamentally simple to understand in light of recent events we have lost confidence in our ability to predict the companys future prospects with a sufficient degree of certainty the company said the loss on its investment reduced yeartodate returns by four percentage points reflecting this loss as of todays close the pershing square funds are down approximately 2 yeartodate the company said netflix shares touched a 52week low on wednesday after the company said it lost subscribers in the first quarter the stock ended the day with a 3512 loss closing at 22619 a share earlier in the session it touched a 52week low of 21251 per share