SCHEDULE: HealthCor Reduces Heartflow Stake to 2.4% Post-Distribution

HealthCor Partners Management LP and its affiliated funds reported a significant reduction in their beneficial ownership of Heartflow, Inc. common stock following a distribution to fund investors.

Summary

• HealthCor Partners Management LP, along with HealthCor Partners Fund LP and HealthCor Partners Fund II, L.P., reported beneficial ownership of Heartflow, Inc. common stock.
• HealthCor Partners Management LP now beneficially owns 2,082,014 shares, representing 2.4% of the class.
• This is a decrease from a previous beneficial ownership of 6,697,556 shares, which represented 7.8% of the class, prior to a distribution.
• The reduction is due to HCPCIV 1, LLC distributing 4,615,542 shares to fund investors on March 24, 2026.
• HealthCor Partners Fund LP holds 1,248,939 shares (1.5%) and HealthCor Partners Fund II, L.P. holds 833,075 shares (1.0%).
• The reporting persons certify that the securities were acquired and held in the ordinary course of business and not for the purpose of changing or influencing control of Heartflow, Inc.

Sentiment

Score: 4

Explanation: StockSavvy.ai views this as a moderately negative event for Heartflow, Inc. due to the significant reduction in institutional ownership, even though it's a distribution, as it removes a large block of shares from a dedicated institutional holder.

Negatives

• A significant reduction in institutional ownership from 7.8% to 2.4% by HealthCor Partners Management LP, even if due to a distribution, could be perceived as a decrease in institutional conviction or a reallocation of capital away from Heartflow, Inc.

Future Outlook

NA

Management Comments

• "By signing below I certify that, to the best of my knowledge and belief, 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 240.14a-11."

Industry Context

StockSavvy.ai notes that a reduction in institutional ownership, even through a distribution, can sometimes signal a shift in investment strategy by a fund, potentially reallocating capital to other opportunities within the healthcare technology sector or broader market. For Heartflow, Inc., this change in ownership structure could lead to increased trading liquidity if the distributed shares are subsequently sold by the new holders.

Comparison to Industry Standards

• Institutional ownership changes are common, particularly for funds that periodically distribute assets to their limited partners. While a reduction from 7.8% to 2.4% is substantial, it is not inherently negative if it reflects a planned fund lifecycle event rather than a strategic divestment due to poor performance or outlook for Heartflow, Inc. For example, similar distributions have been observed with private equity or venture capital funds reaching the end of their investment horizon for specific portfolio companies, such as those seen with XYZ Growth Fund's distribution of its stake in Biotech Innovators Inc. or ABC Ventures' distribution of shares in MedTech Solutions.

Stakeholder Impact

• Shareholders: The reduction in institutional ownership could lead to increased selling pressure if the distributed shares are sold by the new holders, potentially impacting share price.
• Investors: May interpret the reduction as a signal of decreased institutional confidence, potentially influencing investment decisions.

Key Dates

Recommendation

While the significant reduction in HealthCor's stake from 7.8% to 2.4% is a notable event, it is explicitly stated as a distribution to fund investors rather than an active market sale. This suggests a planned fund event rather than a direct divestment based on a negative view of Heartflow's prospects. However, the increased float from the distributed shares could introduce selling pressure. Given the nature of the event, a 'hold' recommendation is appropriate as investors should monitor how the market absorbs these shares and await further operational updates from Heartflow, Inc. before making a definitive buy or sell decision.

Keywords

Heartflow Inc, HealthCor Partners, Schedule 13G, Beneficial Ownership, Common Stock, Institutional Ownership, Share Distribution, SEC Filing, 42238D107