SCHEDULE 13G: 8 Knots Management and Affiliates Disclose Nearly 10% Stake in Enhabit, Inc.

Investment entities managed by 8 Knots Management, LLC and Scott Green have disclosed a significant beneficial ownership stake of 9.88% in Enhabit, Inc., primarily through various funds and managed accounts.

Summary

• 8 Knots Management, LLC and Scott Green have reported beneficial ownership of 4,988,718 shares of Enhabit, Inc. Common Stock, representing 9.88% of the class.
• This ownership is primarily held through 8 Knots Fund, LP (5.34% or 2,694,378 shares) and 8 Knots Fund II, LP (0.41% or 207,511 shares).
• 8 Knots GP, LP, as the general partner of these funds, is deemed to beneficially own 2,901,889 shares, or 5.75% of the class.
• The filing indicates that the securities were acquired and are held in the ordinary course of business and not for the purpose of changing or influencing the control of Enhabit, Inc.
• The percentage of class is calculated based on 50,479,951 shares of Enhabit, Inc. Common Stock outstanding as of the Issuer's Form 10-K filed on March 6, 2025.
• 8 Knots Management and Scott Green disclaim beneficial ownership over shares held by a Sub-Advised Fund (302,888 shares) and certain Separately Managed Accounts (totaling 1,484,513 shares) due to the terminable nature of their advisory agreements, but may be deemed to own shares in one specific SMA (199,628 shares).

Sentiment

Score: 5

Explanation: The document is a factual disclosure of beneficial ownership and does not contain information that would inherently indicate positive or negative sentiment regarding the company's performance or prospects. The stated purpose of the investment is passive.

Positives

• A significant investment by 8 Knots Management and its affiliates, indicating confidence in Enhabit, Inc. from a notable investment firm.
• The filing explicitly states the shares were acquired and are held in the ordinary course of business, not for control, which suggests a passive, long-term investment intent rather than immediate activist pressure.

Risks

• The beneficial ownership disclaimers for certain funds and separately managed accounts (Sub-Advised Fund and SMAs 1, 3, 4, 5) mean that 8 Knots Management and Scott Green do not fully control the voting or disposition of all shares they advise, which could impact their overall influence or strategy regarding Enhabit, Inc.

Future Outlook

NA

Management Comments

• "The securities referred to above were acquired and are held in the ordinary course of business and were not acquired and are not held for the purpose of or with the effect of changing or influencing the control of the issuer of the securities and were not acquired and are not held in connection with or as a participant in any transaction having that purpose or effect, other than activities solely in connection with a nomination under Rule 14a-11."

Industry Context

This filing indicates a significant passive investment by an institutional asset manager in Enhabit, Inc., a company operating in the healthcare services sector (likely home health and hospice, given its CUSIP and typical business for companies with 'Enhabit' in their name, though not explicitly stated in the 13G). Such disclosures are common for investment firms accumulating stakes in publicly traded companies.

Stakeholder Impact

• Shareholders: The disclosure of a significant institutional investor holding nearly 10% of the company's stock could be viewed positively, signaling confidence in the company's value.

Key Dates

Keywords

Enhabit Inc, 8 Knots Management, Scott Green, Schedule 13G, Beneficial Ownership, Common Stock, Investment Adviser, SEC Filing, Institutional Investor, Passive Investment