HeartFlow Inc

We added HeartFlow to our portfolio in Q1 due to its strong business fundamentals and growth potential in the health care sector. The company is positioned well within the diagnostics space, which we believe can sustain high growth. Our investment philosophy focuses on identifying high-quality growth businesses, and HeartFlow aligns with this strategy as we see it as a company with sustainable competitive advantages.

The manager mentioned adding HeartFlow as a new position in the health care sector during Q1. However, there is no specific argument or directional language provided regarding the company's future performance or valuation.

Heartflow, Inc. is a medical device company providing an AI-powered engine to diagnose heart disease, which is responsible for 1 in 5 deaths in the U.S. Their solution offers a minimally invasive way to detect blockages in heart vessels, significantly reducing false negatives and positives compared to current standards. The company has a strong competitive moat with over 600 peer-reviewed publications and FDA approval, and it is only low single-digit penetrated into its addressable market. Heartflow is positioned as a model for the next generation of healthcare companies, leveraging big data and AI to enhance efficiency and save lives.

Earlier this year we participated in the IPO of Heartflow, Inc., a health care innovator that uses AI to analyze a coronary CT angiogram scan, creating a personalized 3D model of heart arteries. The AI, combined with computational fluid dynamics and human analysts, simulates blood flow through this model to assess the impact of blockages and provide doctors with a 'CT-derived fractional flow reserve' value, which helps diagnose coronary artery disease and personalize treatments. This innovative approach positions Heartflow as a leader in the intersection of AI and health care, making it a compelling investment opportunity.

Heartflow’s shares performed exceptionally well after the company’s August IPO was well received by investors. The company’s solution provides a minimally invasive way to diagnose blockages in the heart vessels, reducing both false negatives and false positives relative to the standard of care today.