The Rise and Fall of Rock Springs Capital Management LP: A Q3 2022 vs. Q4 2022 Holdings Comparison

Rock Springs Capital Management LP is one of the most well-known institutional investors in the US. As of Q3 2022, they reported holdings worth over $8 billion, spread across various sectors and markets. However, a recent comparison of their Q3 2022 vs. Q4 2022 13F holdings shows an interesting shift in their investment portfolio.

In this article, we'll take a deep dive into this shift and explore the reasons behind it. We'll also look at some of the notable holdings that were either added or sold by Rock Springs Capital Management LP during this period.

HUMANA INC (HUM)

Humana Inc, one of the largest healthcare companies in the US, has been a part of Rock Springs Capital Management's portfolio for a long time. In fact, the fund increased its holdings of HUM during Q4 2022, maintaining its position as the second-largest holder. The addition of 218,449 shares resulted in a 5.6% increase in the fund's total value of HUM.

IMMUNOCORE HLDGS PLC (IMCR)

Another notable addition to Rock Springs Capital Management's portfolio during Q4 2022 was ImmunoCore Holdings. The company is focused on developing therapies for a range of diseases, including cancer. The fund added more than 300,000 shares of IMCR during the period, resulting in a 15.6% increase in the value of their holdings.

INSULET CORP (PODD)

Insulet Corp, the diabetes management company, was another company that saw an increase in the fund's holdings during Q4 2022. The fund added 5,750 shares of PODD, resulting in a 29.8% increase in the value of their holdings.

NEUROCRINE BIOSCIENCES INC (NBIX)

Rock Springs Capital Management LP sold its entire holdings of Neurocrine Biosciences during Q4 2022. The company develops therapies for neurological disorders, including Parkinson's disease. The sale resulted in a 12.5% decrease in the value of the fund's holdings.

AGILON HEALTH INC (AGL)

Agilon Health Inc, the healthcare management company, saw a steep decline in the fund's holdings during Q4 2022. Rock Springs Capital Management LP sold almost 2 million shares of AGL, resulting in a 30% decrease in the value of their holdings.

PROMETHEUS BIOSCIENCES INC (RXDX)

Prometheus Biosciences, the biopharmaceutical company, saw a significant increase in the fund's holdings during Q4 2022. The fund added almost 400,000 shares of RXDX, resulting in a 197.9% increase in the value of their holdings.

CONCLUSION

The Q3 2022 vs. Q4 2022 13F holdings comparison of Rock Springs Capital Management LP has revealed some interesting trends. The fund increased their holdings in some of the companies, such as HUM, IMCR, and PODD, which can be attributed to their strong growth potential. However, they also sold some of their holdings, such as AGL, and completely divested from NBIX.

It's worth noting that 13F filings provide only a partial picture of the fund's investment portfolio and strategy. Nonetheless, they offer valuable insights for investors and analysts who are looking to track the movements of institutional investors in the US.