In his report of September 24th, Connors notes: "When Equity L/S (ELS) managers want exposure to the Pharmaceutical / Biotech Industry Group (S5PHRM Index) their preference for Pharmaceuticals is clear with a 2.5x overweight in gross exposure and a 7.5x preference when comparing just the net exposures." If you use the the pharma and biotech sub-industry GICS level 4 categories of S5PHAR and S5BIOT as representative benchmarks, Biotech’s $660 billion market cap is just 2/3rds of pharma’s around $1 trillion market cap. That means hedge funds are overweight Pharma relative to Biotech in both absolute terms and relative to the...