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

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

Wed, September 23, 2026 at 5:29 PM GMT+3 3 min read

• LTH -2.83%
• ^RUT -1.34%

Osterweis Capital Management, an investment management firm, released its Q2 2026 investor update for its "Osterweis Opportunity Fund". You can download a copy of the letter here. The fund returned 35.34% in the quarter, significantly outperforming the Russell 2000 Growth Index's 25.71% gain. Robust corporate profits, AI investment, easing oil-shock concerns, strong labor markets, and consumer spending drove the rally. Security selection played a key role in outperformance, especially in Technology, Industrials, Health Care, and Consumer Discretionary. Conversely, smaller sectors like Consumer Staples, Financials, and Real Estate lagged but had minimal impact overall. Looking ahead, while AI is expected to continue influencing economic growth and market performance, a potential consolidation phase for AI-related stocks is anticipated. Please review the Fund's top five holdings to gain insights into its key selections for 2026.

In its second-quarter 2026 investor letter, Osterweis Opportunity Fund highlighted Life Time Group Holdings, Inc. (NYSE:LTH). Headquartered in Chanhassen, Minnesota, Life Time Group Holdings, Inc. (NYSE:LTH) is a health, fitness, and wellness company. On September 22, 2026, Life Time Group Holdings, Inc. (NYSE:LTH) closed at $38.19 per share. Over the past month, Life Time Group Holdings, Inc. (NYSE:LTH) declined 16.83%, but its shares are up 28.94% over the past year. Life Time Group Holdings, Inc. (NYSE:LTH) has a market capitalization of $8.53 billion, and its stock has traded within a 52-week range of $24.14 to $47.24.

Osterweis Opportunity Fund stated the following regarding Life Time Group Holdings, Inc. (NYSE:LTH) in its Q2 2026 investor letter:

"Our Consumer Discretionary names also outperformed in the second quarter, led by Life Time Group Holdings, Inc. (NYSE:LTH), which operates high-end health clubs nationwide. The company has been a strong performer for the year and a half that we have owned it, consistently beating and raising estimates, however we believe the private equity overhang was holding back the stock. When the company reported its first quarter earnings, it announced that it had reached an agreement with Atairos to purchase shares from PE holders Leonard Green and TPG. The stock responded positively to this news, and then the PE holders sold another block the next day, cutting their combined position to under 10%. We believe that the fears of this secondary overhang are behind us, and investors will now shift their focus to the long-term opportunity of 400-500 gyms nationwide, up from 190 today."

Life Time Group Holdings, Inc. (NYSE:LTH) is not on our list of the 40 Most Popular Stocks Among Hedge Funds. According to our database, 38 hedge fund portfolios held Life Time Group Holdings, Inc. (NYSE:LTH) at the end of the second quarter, down from 41 in the previous quarter. While we acknowledge the potential of Life Time Group Holdings, Inc. (NYSE:LTH) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

In addition, please check out our hedge fund investor letters Q2 2026 page for more investor letters from hedge funds and other leading investors.

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This article is originally published at Insider Monkey.