Pershing Square Holdings, the hedge fund headed up by Bill Ackman, has exited its Netflix investment racking up losses in excess of $400 million in the process, according to a report by Business Times.

The streaming service's share price plunged on Wednesday (April 20) after it revealed a decrease in subscribers for the first time in a decade.

Pershing Square, which acquired 3.1 million Netflix shares in January, said in a statement that: “While Netflix’s business is fundamentally simple to understand, in light of recent events, we have lost confidence in our ability to predict the company’s future prospects with a sufficient degree of certainty."