Fund Trims $161M Travere Stake Post 100% Rally

One might say that Armistice Capital, that paragon of New York’s financial elite, found itself in a quandary last quarter. Having once held a rather substantial stake in Travere Therapeutics (TVTX +2.73%), it decided, with a dash of prudence, to dispose of 2,152,000 shares, thereby reducing its position by an estimated $29.3 million. A curious turn of events, to be sure, though not entirely unforeseen.

What Happened

According to a filing with the Securities and Exchange Commission, released with the solemnity of a society announcement, Armistice Capital parted with nearly 2.2 million shares of Travere Therapeutics during the third quarter. The post-transaction holding, a modest 6.7 million shares, was valued at a tidy $160.7 million as of September 30. One might imagine the fund’s directors, in their opulent boardroom, murmuring about the need for a little diversification.

What Else to Know

The fund’s sale reduced its Travere Therapeutics stake to 2% of 13F AUM, yet the position remains its second-largest holding-a testament to the company’s enduring allure. The top five holdings, as per the filing, are a veritable constellation of biotech stars:

NASDAQ:PTCT: $201.1 million (6.3% of AUM)
NASDAQ:TVTX: $160.7 million (5% of AUM)
NASDAQ:SUPN: $135.5 million (4.3% of AUM)
NASDAQ:INCY: $99 million (3.1% of AUM)
NASDAQ:NBIX: $97.8 million (3.1% of AUM)

As of Monday’s market close, Travere’s shares stood at $35.44, having doubled in value over the past year-a feat that would make even the most stoic investor blink. The S&P 500, by contrast, has managed a mere 14% gain, a trifle by comparison.

Company Overview

Metric	Value
Market Capitalization	$3.2 billion
Revenue (TTM)	$435.8 million
Net Income (TTM)	($88.5 million)
Price (as of market close Monday)	$35.44

Company Snapshot

Travere Therapeutics markets therapies for rare diseases, including Chenodal, Cholbam, and Thiola, and is advancing clinical candidates such as Sparsentan and TVT-058.
The company generates revenue through the sale of approved specialty pharmaceuticals and invests in R&D for pipeline expansion in rare disease indications.
Primary customers include healthcare providers, specialty pharmacies, and patients affected by rare and ultra-rare diseases.

Travere Therapeutics, Inc. is a biopharmaceutical company focused on developing and commercializing therapies for rare diseases. With a portfolio of marketed products and a pipeline targeting high unmet medical needs, the company leverages clinical expertise and strategic partnerships to advance its growth. Its emphasis on rare and specialty conditions provides a differentiated position in the biotechnology sector.

Foolish Take

It is not uncommon for hedge funds to trim exposure after a meteoric rise-even among high-conviction bets. Travere, one might say, has been experiencing a rather splendid quarter, with total revenue soaring to $164.9 million, driven by a 155% year-over-year surge in FILSPARI’s U.S. sales. The company also swung to $25.7 million in GAAP net income from a $54.8 million loss a year earlier, a feat that would make even the most jaded accountant raise an eyebrow.

Against this backdrop, it is notable that Armistice-a highly event-driven healthcare investor-remains heavily concentrated in Travere, even after selling $29.3 million worth of shares. The position still accounts for 5% of AUM and ranks as its second-largest holding, sitting alongside exposures to PTC Therapeutics and Supernus Pharmaceuticals. The trim looks more like a dash of prudence after a 100% share-price rebound than a shift in thesis, especially with Travere preparing for a potential FDA decision in FSGS early next year.

For long-term investors, the combination of accelerating commercial uptake, improving profitability, and upcoming regulatory catalysts keeps Travere squarely in focus. A dashedly clever bit of code, what!

Glossary

13F: A quarterly SEC filing by institutional investment managers disclosing their equity holdings.
Assets Under Management (AUM): The total market value of assets a fund or investment manager oversees on behalf of clients.
Alpha: A measure of an investment’s performance relative to a benchmark, indicating excess return above the benchmark.
Stake: The ownership interest or number of shares held in a particular company by an investor or fund.
Biopharmaceutical: A sector focused on developing drugs using biological sources and advanced biotechnology methods.
Clinical candidates: Experimental drugs or therapies currently being tested in human clinical trials.
Pipeline: The portfolio of drug candidates a biopharmaceutical company is developing, usually at various stages of research and approval.
Rare diseases: Medical conditions affecting a small percentage of the population, often requiring specialized treatments.
Specialty pharmaceuticals: Medications designed to treat complex, chronic, or rare conditions, often requiring special handling or administration.
Filing: An official document submitted to a regulatory agency, such as the SEC, often disclosing financial or operational information.
TTM: The 12-month period ending with the most recent quarterly report.
Position: The amount of a particular security or asset held by an investor or fund.

And thus, the tale concludes, with the stock price in the soup and the fund’s directors sipping tea in their boardroom, pondering the next move. 📈

2025-11-18 14:12