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Palo Alto Investors LP

CIK:0001306923
Hedge Fund
$2B AUM
45 holdings
Palo Alto, CA, United States
Founded:1989
20 employees
Latest filing:Jun 30, 2025

Palo Alto Investors LP is an independent hedge fund management firm headquartered in Palo Alto, California, United States. The firm primarily focuses on managing investment portfolios for high-net-worth individuals and institutional investors. Known for its specialization in public equities, particularly in the healthcare and biotechnology sectors, Palo Alto Investors LP was founded in 1989 and typically maintains a lean team structure. The firm leverages its deep fundamental research expertise to serve its sophisticated client base.

Investment Strategy

Palo Alto Investors LP utilizes a fundamental, research-driven approach focused largely on small- and mid-capitalization public equities, with a particular emphasis on the healthcare, biotech, and life sciences sectors. The firm is known for in-depth company analysis, long-term holding strategies, and identifying undervalued growth opportunities in its niche sectors. Their investment decisions are grounded in intensive due diligence, relying on both financial analysis and industry expertise to create concentrated portfolios.

Latest 13F Filing Activity

Palo Alto Investors LP filed their most recent 13F report on Jun 30, 2025 disclosing 45 equity positions with a total 13F market value of $470M. The fund increased holdings in Insmed Inc., Acadia Pharmaceuticals Inc., Disc Medicine Inc. among other positions. Palo Alto Investors LP reduced exposure to Amicus Therapeutics Inc., Biomarin Pharmaceutical Inc., Sarepta Therapeutics Inc. among others.

Top Buys
I
INSMINSMED INC
+$11.8M
A
ACADACADIA PHARMACEUTICALS INC
+$11.0M
I
IRONDISC MEDICINE INC
+$7.7M
S
STAASTAAR SURGICAL CO
+$4.0M
R
RNAAVIDITY BIOSCIENCES INC
+$3.4M
Top Sells
F
FOLDAMICUS THERAPEUTICS INC
-$27.8M
B
BMRNBIOMARIN PHARMACEUTICAL INC
-$23.9M
S
SRPTSAREPTA THERAPEUTICS INC
-$13.4M
P
PRTAPROTHENA CORP PLC
-$12.8M
U
UTHRUNITED THERAPEUTICS CORP
-$5.0M

Top Holdings

I
INSMINSMED INC
+18.5%$87.1M
A
ACADACADIA PHARMACEUTICALS INC
+11.8%$55.3M
B
BMRNBIOMARIN PHARMACEUTICAL INC
+9.8%$46.2M
F
FOLDAMICUS THERAPEUTICS INC
+6.8%$32.1M
U
UTHRUNITED THERAPEUTICS CORP
+5.8%$27.4M

Equity Positions (45)

TickerSecurityWeightMarket ValueSharesAvg CostPriceChange (QoQ)
INSMED INC18.52%$87.1M865,113$17.74$100.64+$11.8M
ACADIA PHARMACEUTICALS INC11.76%$55.3M2,563,209$27.63$21.57+$11.0M
BIOMARIN PHARMACEUTICAL INC9.83%$46.2M840,470$77.60$54.97-$23.9M
AMICUS THERAPEUTICS INC6.84%$32.1M5,610,513$9.22$5.73-$27.8M
UNITED THERAPEUTICS CORP5.84%$27.4M95,482$82.82$287.35-$5.0M

Industry Allocation

PHARMACEUTICAL PREPARATIONS
+80.1%
BIOLOGICAL PRODUCTS, (NO DIAGNOSTIC SUBSTANCES)
+9.5%
SURGICAL & MEDICAL INSTRUMENTS & APPARATUS
+3.6%
OPHTHALMIC GOODS
+2.8%
ORTHOPEDIC, PROSTHETIC & SURGICAL APPLIANCES & SUPPLIES
+2.2%