Life Time Group Holdings (LTH) Plans to More Than Double Its Current Location Count

Osterweis Capital Management's Q2 2026 investor update revealed Life Time Group Holdings (NYSE:LTH) as a strong performer in the Consumer Discretionary sector. The fund returned 35.34% in the quarter, outpacing the Russell 2000 Growth Index's 25.71% gain. Life Time Group Holdings, Inc. operates high-end health clubs across the United States and has consistently beaten and raised estimates since the fund began holding the stock.

The company reported reaching an agreement with Atairos to purchase shares from PE holders Leonard Green and TPG, which led to a positive response from investors. Following the sale of another PE block, Life Time Group Holdings, Inc.'s combined position was reduced to under 10%. The fund believes that the fears of secondary overhang have been addressed, and investors should now focus on the company's long-term opportunity of expanding its 400-500 gyms nationwide.

Life Time Group Holdings, Inc. is not among the 40 Most Popular Stocks Among Hedge Funds, with only 38 hedge fund portfolios holding the stock at the end of the second quarter, down from 41 in the previous quarter. Despite acknowledging the potential of Life Time Group Holdings, Inc. as an investment, the fund believes certain AI stocks offer greater upside potential and less downside risk.