Biotech Portfolio Reallocation
Cormorant Asset Management Trims Biotech Stakes While Other Funds Increase Positions
Key Points
Cormorant cut its Pharvaris position by 20.6% in the 4th quarter—selling 280,200 shares to end with 1,083,000 shares—leaving Pharvaris as its ~17th-largest holding (about 1.4% of the portfolio). The report also noted a separate insider transaction: director Johannes Gerardus Chri Schikan sold 29,070 shares at an average price of $30.32 on April 30.
For GH Research, Cormorant reduced its stake by 32.2% in the 4th quarter, selling 616,439 shares and ending with 1,300,000 shares. The article added that Lynx1 Capital Management increased its holdings by 27.5% (to 8,601,189 shares), and that 56.90% of GH Research is owned by institutional investors and hedge funds.
Praxis Precision Medicines remained Cormorant’s largest holding even after a 5.0% reduction: Cormorant held 950,000 shares after selling 50,000, with PRAX representing about 12.9% of its portfolio. The piece also cited analyst actions including Truist setting a $616 target price and issuing a “buy” rating (June 2), and Royal Bank of Canada initiating coverage.
In Cabaletta Bio, Cormorant decreased its position by 12.0% in the 4th quarter, selling 600,000 shares to finish with 4,400,000 shares (about 0.4% of the portfolio). The article also provided trading context: Cabaletta Bio stock opened at $2.84, with a 1-year range of $1.26 to $4.23, and moving averages of $3.36 (50-day) and $2.91 (200-day).
For BridgeBio Pharma, Cormorant trimmed its stake by 14.3% in the 4th quarter—selling 200,000 shares to hold 1,200,000 shares—where BBIO accounted for about 4.2% of its portfolio (6th-largest holding). Analyst commentary cited in the report included Barclays reiterating an “overweight” rating and Morgan Stanley raising its price objective from $94 to $98.
Cormorant Asset Management LP quietly trimmed five biotech stakes in the fourth quarter of 2025, with its sharpest cut coming at GH Research — down 32.2%, or 616,439 shares — followed by a 20.6% reduction at Pharvaris, where it sold 280,200 shares to finish with 1,083,000 SEC Filing Data.
The moves look more like a rebalancing than a retreat. Praxis Precision Medicines, which Cormorant trimmed by just 5%, still accounts for 12.9% of its entire portfolio — its single largest holding SEC Filing Data.
Cormorant's Five Cuts by the Numbers
Cormorant's Q4 reductions spanned five companies. It sold 616,439 GH Research shares, leaving 1,300,000. It sold 280,200 Pharvaris shares, leaving 1,083,000 (about 1.4% of the portfolio). BridgeBio Pharma fell 14.3% after a 200,000-share sale, leaving 1,200,000 shares at roughly 4.2% of the portfolio SEC Filing Data.
Cabaletta Bio saw a 12.0% cut — 600,000 shares sold — leaving Cormorant with 4,400,000 shares, though that amounts to just 0.4% of its portfolio. Praxis was the lightest trim: 50,000 shares sold, 950,000 remaining. Despite the cut, Praxis stays Cormorant's biggest bet by a wide margin SEC Filing Data.
Other Funds Step In Where Cormorant Stepped Back
Cormorant's selling did not go unanswered. At GH Research, Lynx1 Capital Management moved in the opposite direction — increasing its holdings by 27.5% to 8,601,189 shares. Institutional investors and hedge funds now own 56.9% of GH Research's float, a level of concentration that has helped cushion any selling pressure SEC Filing Data.
Other institutions also added to Cabaletta Bio and BridgeBio Pharma positions during the same period. At Praxis, several funds reported new or larger buys even as Cormorant edged lower. The pattern across all five stocks points to a sector that institutions still want exposure to SEC Filing Data.
Analysts Stay Bullish on BridgeBio and Praxis
On Wall Street, the analyst community showed little concern about Cormorant's trimming. Morgan Stanley raised its BridgeBio Pharma price target from $94 to $98. Barclays kept its
Truist Securities went even further on Praxis, setting a $616 price target and issuing a
Royal Bank of Canada separately initiated coverage of Praxis around the same time, adding another institutional endorsement to the stock Cormorant is still most committed to SEC Filing Data.
Pharvaris Insider Sale Adds a Wrinkle
One detail standing out from the Pharvaris filings: director Johannes Gerardus Chri Schikan sold 29,070 shares on April 30 at an average price of $30.32, totaling roughly $881,000 SEC Filing Data. The sale came after Cormorant had already reduced its own Pharvaris stake by 20.6% in Q4.
Cabaletta Bio offers a contrasting picture on the price chart. The stock opened at $2.84 on June 18, sitting below its 50-day moving average of $3.36 but just above its 200-day average of $2.91. Its one-year range runs from $1.26 to $4.23, putting it in delicate territory as Cormorant holds 4.4 million shares SEC Filing Data.
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