Yiheng Capital Sells $29.4M Stake in Planet Fitness Shares
Yiheng Capital Management, L.P., Sold Off 270,000 Planet Fitness Shares
Yiheng Capital Management, L.P., reduced its stake in Planet Fitness (NYSE:PLNT) by selling 270,000 shares during the third quarter of 2025, a move totaling $29.4 million at an average price of $29,443,500. This decision, as outlined in a filing with the Securities and Exchange Commission (SEC) dated November 14, 2025, reduced the fund’s initial 2.65% AUM exposure to just 0.27%. The divestment reflects a broader strategy of portfolio downsizing, as total fund assets under management decreased by 39% compared to the prior quarter.
Yiheng Capital’s strategic shift highlights a nuanced approach to investment risk management, particularly in the context of fluctuating market conditions. The fund’s decision to exit the Planet Fitness position underscores the importance of ongoing portfolio assessment and adaptation. This adjustment followed a modest decline in Planet Fitness’s stock price during the third quarter, a period during which the stock was priced at $107.11, representing a 10.62% one-year increase compared to the S&P 500’s 0.52% gain.
The original investment in Planet Fitness had represented 2.65% of Yiheng Capital’s AUM, a substantial holding at the time. However, the strategy centered on purchasing put options, which provided the right, but not the obligation, to sell the stock at a predetermined price should its value fall. As the stock price experienced only a modest reduction during the third quarter, the put options lost value, leading Yiheng Capital to strategically exit the position.
The move demonstrates a careful calibration of risk within the portfolio. The fund’s analysts likely weighed the potential for further price declines against the costs associated with holding the put options. The decision to sell was likely driven by a desire to streamline the portfolio and optimize exposure to various assets. The fund held a diverse portfolio of 27 holdings at the time, with four of these holdings consisting of options.
Planet Fitness, Inc. operates a large network of fitness centers utilizing a franchise-driven model to expand its footprint. These locations target value-oriented fitness consumers in the United States and select international markets, offering affordable membership options and backed by a strong brand. The company’s revenue streams include franchise fees, corporate-owned store operations, and equipment sales to franchisees. This diversified approach contributes to the company’s stability and scalable business structure.
As of November 13, 2025, Planet Fitness had $1.29 billion in revenue (TTM) and $205.80 million in net income (TTM). The company’s growth strategy relies on expanding its franchise network and leveraging its brand recognition. This financial performance underscores the company’s success in the leisure and fitness industry, attracting a significant customer base.
The industry landscape demonstrates increasing competition from digital fitness platforms, yet Planet Fitness’s model – focused on providing accessible and affordable fitness options – remains a significant player. The company’s continued success hinges on adapting to evolving consumer preferences and maintaining its competitive advantage.
Yiheng Capital’s move reflects a disciplined investment strategy, combining stock ownership with the use of options to manage risk. The divestment highlights the dynamic nature of investment decisions, requiring constant monitoring and reassessment of portfolio holdings in response to market conditions.
