Connecticut-based fund Braidwell initiated a new stake in Hinge Health (HNGE 1.16%), adding 910,476 shares during the third quarter, an estimated $44.7 million position, according to a November 14 SEC filing.

What Happened

According to a Securities and Exchange Commission (SEC) filing published November 14, Braidwell established a new position in Hinge Health (HNGE 1.16%), acquiring 910,476 shares during the third quarter. The estimated value of the stake is $44.7 million based on the quarter-end price. Hinge Health did not appear in the fund’s previous quarterly disclosure.

What Else to Know

The new position in Hinge Health accounts for 1.8% of Braidwell's $2.5 billion in reportable U.S. equity assets under management as of September 30.

Top holdings after the filing: 

• NASDAQ:CAI: $221.3 million (9% of AUM)
• NASDAQ:XENE: $144.7 million (5.9% of AUM)
• NASDAQ:CGON: $132.3 million (5.4% of AUM)
• NASDAQ:NBIX: $123.6 million (5% of AUM)
• NASDAQ:KRYS: $91.9 million (3.7% of AUM)

As of Wednesday, shares of Hinge Health were priced at $46.02, up 43% since their IPO price of $32 in May and well outperforming the S&P 500, which is up 13%.

Company Overview

Company Snapshot

• Hinge Health offers a digital health platform focused on musculoskeletal care, including solutions for joint and muscle health, acute injury management, chronic pain, and post-surgical rehabilitation.
• The company operates a software-as-a-service (SaaS) business model, providing digital health solutions to clients on a subscription basis.
• It serves large employers, health insurers, and healthcare providers seeking to improve outcomes and reduce costs for musculoskeletal conditions.

Hinge Health, Inc. is a healthcare technology company specializing in digital solutions for musculoskeletal health, leveraging a scalable software platform to address chronic pain and rehabilitation needs. The company operates at significant scale, with its enterprise-focused approach and integration with employer and insurer health programs underpin its competitive differentiation in the healthcare technology landscape.

Foolish Take

A big fund stepping into a newly public name this early often signals conviction not just in momentum, but in the underlying economics—and Hinge Health’s latest results give long-term investors a clearer picture of what that bet is tied to. The company is scaling rapidly: Third-quarter revenue jumped 53% year-over-year to $154.2 million, while GAAP gross margin expanded to 82% and free cash flow hit a record $81.3 million. With more than 1.5 million lifetime members and a 25% increase in clients to 2,560, Hinge is demonstrating the operating leverage and sticky enterprise relationships investors typically look for in digital health platforms.

For Braidwell, a new SaaS-heavy healthcare name fits neatly alongside its broader thesis of backing scaled, high-need solutions. The 1.8% allocation is small relative to top positions but aligns with its pattern of building early stakes in companies showing accelerating fundamentals.

Long-term investors should watch whether Hinge can sustain margin expansion as it continues investing in AI-powered care delivery. Updated guidance—calling for full-year revenue growth of 47% and non-GAAP operating income of $106 million to 108 million—adds support to the growth narrative, but valuation and competition in employer-focused digital health remain among the most important risks.

Glossary

Stake: The ownership interest or investment a person or entity holds in a company.
Assets under management (AUM): The total market value of investments that a fund or manager oversees on behalf of clients.
Reportable AUM: The portion of a fund’s assets that must be disclosed in regulatory filings.
Position: The amount of a particular security or investment held by an investor or fund.
Quarterly disclosure: A report funds must file every three months, detailing their investment holdings.
Top holdings: The largest investments in a fund’s portfolio, usually ranked by market value.
Alpha: A measure of an investment’s performance compared to a benchmark, indicating value added or subtracted by active management.
Musculoskeletal care: Medical treatment and management of bones, muscles, joints, and related conditions.
Employer and insurer health programs: Health benefit plans provided by companies or insurance firms to cover employees or members.
Third quarter: The three-month period from July 1 to September 30 in a company’s financial year.
Digital health platform: Technology-based services that deliver healthcare solutions, often remotely or via software.
TTM: The 12-month period ending with the most recent quarterly report.
Software-as-a-service (SaaS): A business model in which software is licensed on a subscription basis and is centrally hosted.