Avoro Capital Advisors LLC Q3 2022 vs. Q4 2022 13F Holdings Comparison

Avoro Capital Advisors LLC is a hedge fund that specializes in healthcare-related investments. Every quarter, they release a report called Form 13F, which lists all the securities they own as of the end of the quarter. In this blog post, we'll take a closer look at their Q3 2022 and Q4 2022 13F holdings to see which companies they invested in, and which ones they decided to sell.

First, let's take a look at the companies they bought. Horizon Therapeutics PLC was their biggest purchase, with Avoro buying 1.875 million more shares in Q4 than they had in Q3. They also increased their holdings in Apellis Pharmaceuticals Inc (+5%) and Iveric Bio Inc (+36.5%).

On the other hand, Avoro reduced their holdings in three companies: United Therapeutics Corp (-2.09%), Madrigal Pharmaceuticals Inc (-0.81%), and Sarepta Therapeutics Inc (-5.68%). Interestingly, they also sold all of their shares in Relay Therapeutics Inc, Amarin Corp PLC, and Bioatla Inc, which suggests that they may have lost confidence in those companies' prospects.

One thing to note is that Avoro's Q3 2022 and Q4 2022 13F filings also listed several new holdings. These include Kymera Therapeutics Inc, where they bought 1.691 million shares worth $96,096; Dice Therapeutics Inc, where they purchased 1.451 million shares worth $78,797; and Amylyx Pharmaceuticals Inc, where they acquired 200,000 shares worth $23,278.

It's worth mentioning that Avoro's total portfolio value increased from $10.37 billion in Q3 2022 to $11.09 billion in Q4 2022, representing a 7% increase. Their overall turnover rate was 10%, which means that they had relatively low portfolio turnover during the period.

In terms of sector allocations, Avoro had the highest exposure to Biotechnology (52%), followed by Pharmaceuticals (23%), Health Care Equipment (7%), and Healthcare Providers & Services (7%). As such, it's clear that Avoro is heavily invested in healthcare-related companies and has a strong conviction in the long-term prospects of the sector.

In conclusion, Avoro Capital Advisors LLC made some interesting moves during Q4 2022. While they added a few new positions, they also trimmed their holdings in some companies and sold out of others entirely. Whether this was a reflection of the changing landscape of the healthcare sector or purely a strategic move by Avoro is up for debate. Nonetheless, it's clear that Avoro Capital Advisors LLC is a fund that is worth watching closely in the coming quarters.