Overview
PAI is the investment adviser to private pooled investment vehicles, the securities of which are
offered to investors on a private placement basis (each a “Fund” and collectively, the “Funds”).
Its principals and the leaders of its portfolio team are Dr. A. Joon Yun and Dr. Patrick Lee.
PAI was previously Palo Alto Investors, LLC, a California limited liability company. On March
30, 2018, it converted into a California limited partnership. At the same time, it organized its
affiliate, PAI LLC, a California limited liability company with which it is under common control,
to act as the general partner of the Funds that are organized as limited partnerships, and PAI entered
into an Investment Adviser Agreement with each of the Funds pursuant to which it manages their
assets.
PAI was founded by William L. Edwards. While Drs. Yun and Lee have led portfolio management
team for some time, until December 31, 2012, Mr. Edwards was PAI’s chairman, chief executive
officer and chief investment officer, and the chairman, chief executive officer and sole shareholder
of Palo Alto Investors,
a California corporation that served as its manager.
Effective as of January 1, 2013, Mr. Edwards transitioned the management of PAI to Drs. Yun and
Lee. In connection with that transition, Drs. Yun and Lee replaced Palo Alto Investors as the co-
managers of PAI and Mr. Edwards resigned as the PAI’s chairman, chief executive officer and
chief investment officer.
As of December 31, 2023, PAI had total discretionary assets under management of approximately
$1.06 billion. PAI manages assets only on a discretionary basis.
PAI invests principally, but not exclusively, in equity and equity-related securities that are traded
publicly in U.S. markets and issued by companies primarily in the healthcare industry. Regardless
of its current focus, for each of the Funds, PAI is authorized to enter into any type of investment
transaction that it deems appropriate under the terms of each Fund’s partnership or investment
agreement.
The investors in the Funds have no opportunity to select or evaluate any Fund investments or
strategies. PAI selects all Fund investments and strategies.