Why This Fund Trimmed a $161 Million Travere Position After a 100% Rally

On Friday, New York City-based Armistice Capital disclosed it sold 2,152,000 shares of Travere Therapeutics (NASDAQ:TVTX) in the third quarter, reducing its position by an estimated $29.3 million.

What Happened

According to a filing with the Securities and Exchange Commission released Friday, Armistice Capital sold nearly 2.2 million shares of Travere Therapeutics during the third quarter. The post-transaction holding stood at 6.7 million shares valued at $160.7 million as of September 30.

What Else to Know

The fund’s sale reduced its Travere Therapeutics stake to 2% of 13F AUM, but the position remains its second-largest holding.

Top five holdings after the filing:

• 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 at market close, shares of Travere Therapeutics were priced at $35.44, up 100% over the past year and well outperforming the S&P 500, which is up nearly 14% in the same period.

Company Overview

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's not unusual to see a hedge fund trim exposure after a stunning rally—even among high-conviction bets. Travere just posted one of its strongest quarters to date, with total revenue soaring to $164.9 million, driven by 155% year-over-year growth 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, underscoring how quickly commercial momentum is reshaping the financial profile.

Against that backdrop, it’s 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 disciplined portfolio management 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.

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.

Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Incyte. The Motley Fool recommends Neurocrine Biosciences. The Motley Fool has a disclosure policy.