iRhythm Holdings Inc

iRhythm provides Zio wearable cardiac monitoring devices that help physicians diagnose arrhythmias associated with elevated stroke risk. We further reduced our position, consistent with last quarter’s trims, following the stock’s strong 2025 performance, driven by company-specific profit-cycle tailwinds and market share gains after a competitor disruption, which are unlikely to recur in 2026. While we have taken profits and reduced the position size back into our GardenSM, ahead of a potential lull in the 2026 profit cycle, we remain constructive on the long-term potential and are looking for the right opportunity to reverse course and potentially build the position again.

iRhythm Technologies is a digital healthcare company that develops wearable, AI-driven cardiac monitoring devices. The stock struggled despite delivering beat-and-raise results. Broader weakness in the healthcare equipment and supplies industry, as investors rotated into cyclical and technology stocks, weighed on performance. Additional pressure came from a US Department of Justice Civil Investigative Demand received in December related to mobile cardiac telemetry services rendered in 2023 via iRhythm’s Zio AT recording device. This inquiry is limited in scope as it only accounts for a small portion of total sales and the risk has already been priced in.

We added iRhythm Technologies, Inc. to our portfolio in Q1 due to its strong growth prospects and attractive valuation. The company is positioned well within the health care sector, which we believe is critical for sustained high growth. Our investment philosophy focuses on high-quality growth companies, and iRhythm aligns with this strategy as we expect it to contribute positively to our portfolio's performance.