Hedge Fund Crowding Update – Q4 2015 – Valeant Pharmaceuticals International (VRX) and Netflix (NFLX) Are Hot

Hedge Fund Crowding Update – Q4 2015 by AlphaBetaWorks Insights Most analyses of hedge fund crowding focus on their residual (idiosyncratic, stock-specific) bets. This is misguided, since over 85% of the monthly return variance for the majority of hedge fund long equity portfolios is due to factor (systematic) exposures, rather than individual stocks. Indeed, it is…