Osterweis Opportunity Fund on Hinge Health, Inc.
Thesis
Hinge Health provides virtual physical therapy and produced exceptional recent financial results. Second-quarter billings increased 52% year over year due to both new members and higher utilization, and the company raised guidance during its June analyst day. The fund also believes investors increasingly recognize that the business is not simply a software company vulnerable to AI disruption. The managers remain excited by current trends but have trimmed the position because they do not believe the present growth rate is sustainable.
“While we are excited by current trends, we do not think Hinge’s growth rates are sustainable, so we have been trimming our position.”
Key risks
- The fund does not believe Hinge Health's current growth rates are sustainable.