Quarterly Changes in Palo Alto Investors LP Holdings: Q3 2022 vs. Q4 2022

Palo Alto Investors LP is a leading hedge fund that specializes in healthcare and biotechnology stocks. The fund's Q3 2022 and Q4 2022 13F holdings were recently compared, and the results are quite interesting. In this blog post, we will analyze the changes in the fund's holdings and what they could mean for investors.

In Q3 2022, Palo Alto Investors LP held 26 different stocks with a total value of $1.4 billion. By Q4 2022, the fund had increased its holdings to 27 stocks but with a lower total value of $1.3 billion.

The largest holdings in Q3 2022 were BIOMARIN PHARMACEUTICAL INC, UNITED THERAPEUTICS CORP, and AMICUS THERAPEUTICS INC. However, by Q4 2022, the largest holdings had shifted to ACADIA PHARMACEUTICALS INC, REVANCE THERAPEUTICS INC, and ANAPTYSBIO INC.

Below are some notable changes in the fund's holdings:

- BIOMARIN PHARMACEUTICAL INC: The fund reduced its holdings in this stock by 4.6%, from 1,976,265 shares in Q3 2022 to 1,885,811 shares in Q4 2022. The value of the holdings also decreased from $167.5 million to $195.2 million, a change of 16.5%.

- AMICUS THERAPEUTICS INC: The fund increased its holdings in this stock by 6.4%, from 9,847,774 shares in Q3 2022 to 10,493,722 shares in Q4 2022. The value of the holdings also increased from $102.8 million to $128.1 million, a change of 24.6%.

- PROTHENA CORP PLC: The fund did not make any significant changes to its holdings in this stock, with only a marginal decrease of 0.1%. However, the value of the holdings decreased from $100.0 million to $99.9 million, indicating a possible lack of confidence in the stock's future prospects.

ACADIA PHARMACEUTICALS INC was the biggest winner in Q4 2022, with the fund increasing its holdings by a massive 41.7%. The value of the holdings also increased from $27.5 million to $37.8 million, a change of 37.8%. This indicates that the fund has a lot of confidence in ACADIA PHARMACEUTICALS INC's future prospects.

REVANCE THERAPEUTICS INC was another significant winner, with the fund increasing its holdings by 20.0%. However, the value of the holdings decreased from $118.9 million to $97.5 million, indicating that the fund has lowered its outlook for the stock's future performance.

In conclusion, Palo Alto Investors LP made some notable changes to its holdings in Q4 2022. While some stocks saw a significant increase in holdings, others experienced a decrease. The fund's shift to ACADIA PHARMACEUTICALS INC as its largest holding indicates that the fund is bullish on the stock's future prospects.