Osterweis Opportunity Fund on Life Time Group Holdings, Inc.
Thesis
Life Time operates high-end health clubs and has consistently beaten and raised estimates during the fund's roughly year-and-a-half ownership period. The fund believed a private-equity ownership overhang had been holding back the shares. Transactions during the quarter substantially reduced the remaining private-equity position, leading the managers to believe this overhang is largely behind the company. They expect investor attention to shift toward Life Time's long-term opportunity to expand to 400 to 500 clubs nationwide from roughly 190 today.
“investors will now shift their focus to the long-term opportunity of 400-500 gyms nationwide, up from 190 today.”