Valeant: Position Crowding, Intrinsic Value – an Update

In January, we wrote a post on Position Crowding and Valeant – the poster child in 2015 for a crowded hedge fund name.  One of the points we made was that “intrinsic value” can be highly uncertain when it’s based on forecasts of earnings and cash flow.  We expanded on this when we wrote about how value investing had changed – from asset based analysis that (still, generally) underpins the Value factor to the concept of “private market value” (see Is Warren Buffett a Value Investor? and Why Apple is Not a Top Ten Holding of 93% of Hedge Funds).  …

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