Luxury Gym Operator Draws $12 Million Fund Bet Despite 19% Stock Slide This Past Year
Key Points
Sea Cliff Partners Management bought 467,100 shares of Life Time Group Holdings in the fourth quarter.
The quarter-end position value increased by $12.42 million as a result.
This marks a significant allocation for a new position, but it is not among the fund’s five largest holdings.
- 10 stocks we like better than Life Time Group ›
On February 17, 2026, Sea Cliff Partners Management disclosed a new position in Life Time Group Holdings (NYSE:LTH), acquiring 467,100 shares in the fourth quarter.
What happened
According to an SEC filing dated February 17, 2026, Sea Cliff Partners Management reported a new stake in Life Time Group Holdings with 467,100 shares acquired in the fourth quarter. The quarter-end value of the position reflected a $12.42 million increase.
What else to know
- This was a new position for the fund, accounting for 5.23% of 13F reportable assets under management as of December 31, 2025.
- Top holdings after the filing:
- NASDAQ:BTSG: $38.19 million (16.1% of AUM)
- NYSE:WCC: $23.49 million (9.9% of AUM)
- NYSE:PLNT: $22.24 million (9.4% of AUM)
- NYSE:HXL: $21.86 million (9.2% of AUM)
- NYSE:JHX: $20.72 million (8.7% of AUM)
- As of Thursday, shares of Life Time Group Holdings were priced at $26.12, down 19% over the past year and well underperforming the S&P 500’s roughly 17% gain in the same period.
Company overview
| Metric | Value |
|---|---|
| Market capitalization | $6 billion |
| Revenue (TTM) | $3.0 billion |
| Net income (TTM) | $373.7 million |
| Price (as of Thursday) | $26.12 |
Company snapshot
- Life Time Group Holdings offers health, fitness, and wellness experiences through resort-style athletic clubs, fitness centers, group classes, personal training, and digital wellness content.
- The company generates revenue primarily from membership subscriptions, ancillary services such as spa and childcare, and digital fitness offerings.
- It targets individual members and families in suburban and urban metropolitan areas across the United States and Canada.
Life Time Group Holdings, Inc. operates a network of upscale athletic clubs and wellness centers across the United States and Canada. The company differentiates itself through integrated in-person and digital health solutions, premium facilities, and a comprehensive suite of ancillary services. Its strategy emphasizes expansion in metropolitan markets and the delivery of holistic wellness experiences to drive member engagement and retention.
What this transaction means for investors
Life Time’s recent stock performance has certainly been lacking, but under the hood it’s understandable why a fund like Sea Cliff, which manages a long-only, concentrated strategy, would take interest.
Life Time delivered nearly $3 billion in revenue in 2025, up more than 14% from the prior year, while fourth-quarter revenue climbed to $745 million. Profit growth has accelerated even faster, with full-year net income jumping a staggering 139% to $373.7 million and adjusted EBITDA jumping 22% to $825 million as higher dues and strong in-center spending boosted margins.
Operationally, the platform also continues to scale. Membership across its athletic clubs reached more than 822,000 members, spread across 189 locations, and average revenue per membership continued rising as customers spend more inside the clubs on services beyond standard access.
The broader portfolio context makes the move more interesting. Other major holdings include companies tied to distribution, materials, and discount fitness operators like Planet Fitness. Adding a premium wellness platform introduces exposure to a different slice of consumer spending.
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Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Planet Fitness and Wesco International. The Motley Fool recommends Hexcel. The Motley Fool has a disclosure policy.
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