Yiheng Capital Management, L.P, fully exited its put option position in Planet Fitness (PLNT 0.80%) in the quarter ending September 30, 2025, according to a November 14, 2025, SEC filing.
What happened
According to a filing with the Securities and Exchange Commission dated November 14, 2025, Yiheng Capital Management, L.P. reported having sold its entire put option position in Planet Fitness during the third quarter. This reduction amounted to 270,000 shares, with the estimated trade value based on the quarterly average price at $29,443,500.
What else to know
Top five holdings after the filing (not including options):
- NYSE: NOAH: $77.85 million (12% of AUM)
- NASDAQ: BILI: $39.85 million (5.9% of AUM)
- NYSE: EDU: $27.70 million (4.1% of AUM)
- NASDAQ: JD: $27.54 million (4.1% of AUM)
- NASDAQ: HTHT: $17.87 million (2.6% of AUM)
- As of November 13, 2025, shares of Planet Fitness were priced at $107.11, up 10.62% over the past year, outperforming the S&P 500 by 0.52 percentage points.
- The position was previously 2.65% of the fund's AUM as of the prior quarter; the exit aligns with a broader downsizing, as total fund AUM dropped 39% quarter-over-quarter.
Company Overview
| Metric | Value |
|---|---|
| Revenue (TTM) | $1.29 billion |
| Net Income (TTM) | $205.80 million |
| Price (as of market close 2025-11-13) | $107.11 |
| One-Year Price Change | 10.62% |
Company Snapshot
- Offers fitness center memberships, franchising services, and equipment sales under the Planet Fitness brand.
- Generates revenue through a mix of franchise fees, corporate-owned store operations, and equipment sales to franchisees.
- Targets value-oriented fitness consumers in the United States and select international markets through both franchised and corporate-owned locations.
Planet Fitness, Inc. operates a large network of fitness centers, leveraging a franchise-driven model to expand its footprint across multiple countries. The company focuses on providing affordable, accessible fitness options, supported by a strong brand and scalable business structure. Its combination of recurring membership revenues and franchise growth underpins its competitive position in the leisure and fitness industry.
Foolish take
Yiheng invests in a variety of industries, which means the Planet Fitness holding was probably not unusual. It also commonly holds stock options along with stocks, with four of its 27 holdings consisting of options in the third quarter of 2025.
By holding put options in Planet Fitness, Yiheng Capital had bet the price of the stock would go down. During the third quarter, Planet Fitness’s stock price had fallen modestly.
Put options give an investor the right to sell a stock at a fixed price until the option’s expiration date. However, such instruments can fall in value if the stock trades in a range or does not move significantly.
This appears to have happened with the Planet Fitness options. While the stock price fell during the third quarter, the change in price was modest, indicating it may not have fallen far enough for the put options to become profitable.
NYSE: PLNT
Key Data Points
Amid such conditions, Yiheng Capital probably made a wise choice by exiting that position.
Glossary
13F reportable assets: Assets that institutional investment managers must disclose quarterly to the SEC, showing certain holdings.
AUM (Assets Under Management): The total market value of investments managed by a fund or investment firm.
Stake: The ownership interest or investment a fund or individual holds in a particular company.
Quarter-over-quarter: A comparison of financial or operational results between one fiscal quarter and the previous quarter.
Franchise fees: Payments made by franchisees to a franchisor for the right to operate under the franchisor's brand and system.
Franchise-driven model: A business strategy where growth and operations are primarily achieved through franchising rather than company-owned locations.
Exposure: The extent to which a fund or investor is invested in a particular asset, sector, or market.
Downsizing (in fund context): Reducing the size of a fund’s portfolio, often by selling assets or positions.
Post-trade: The state of a portfolio or position after a trade has been executed.
TTM: The 12-month period ending with the most recent quarterly report.
