Avoro Capital Advisors LLC

Avoro Capital Advisors' March 2026 13F is, by sector concentration, one of the most uncompromising healthcare-focused portfolios in the current filing cycle — a $10.2 billion book in which 84% of assets are allocated to clinical-stage and commercial-stage biopharmaceutical companies, with no diversification buffer beyond a thin tail of unknown-sector names and legacy positions. The portfolio's portfolio character is defined by its five largest holdings, which together account for more than half of assets: United Therapeutics at $1.57 billion (15.4%, up 15.5% in shares), Ascendis Pharma at $1.16 billion (11.4%, down slightly in value but increased marginally), Madrigal Pharmaceuticals at $952 million (9.4%, up slightly in shares but down in value on price), Krystal Biotech at $746 million (7.3%, flat), and Argenx at $730 million (7.2%, roughly flat). These are all rare-disease and specialty-pharma names with well-defined clinical programs — United Therapeutics in pulmonary arterial hypertension, Ascendis in endocrinology, Madrigal in NASH, Krystal in dermatology gene therapy, and Argenx in immuno-oncology. The quarter's most significant action was a pair of simultaneous exits that freed approximately $650 million in capital: Avidity Biosciences, a myotonic-dystrophy RNA-targeting company, was liquidated completely after a $393 million loss; the SPDR S&P Biotech ETF was sold out for $256 million — a definitive vote against the basket approach to biotech in favor of the manager's bottom-up single-name selection. The freed capital was redeployed in concentrated form: Terns Pharmaceuticals, a metabolism-and-endocrinology name, was increased by 31% through a new $300 million position; Cytokinetics, a cardiovascular-and-neuromuscular developer, was established as a $220 million new entry; Damora Therapeutics and Definium Therapeutics, two earlier-stage clinical names, also entered as new multi-name positions. These four new entries cost roughly $542 million in aggregate and represent the manager's current high-conviction positioning within the rare-disease and specialty-pharma space. For readers tracking activist or event-driven positioning in the biotech sector, Avoro's file reveals a manager operating at substantial scale with a clear bottom-up stock-selection process and a willingness to exit positions completely when clinical-readout outcomes disappoint.