Episode Details

In Hims House episode 71, Jonathan Stern sits down with hedge fund manager Ignacio Canto -- founder & portfolio manager at X-Square Capital, which held over 420k Hims shares as of Q1. Canto traces his interest back years, through personal product discovery and his late father's perspective as a urologist, and frames Hims as a platform business attacking a broken, expensive, and slow healthcare system. He explains why he never considered selling through the Novo Nordisk lawsuit, then lays out the moats he cares about: network effects, data ownership, proprietary wearables, and a retail following that grants rare access to cheap equity capital. He compares Hims to a mix of Costco + Netflix, makes a Tesla-style case for why the retail cult is itself part of the thesis, and argues geographic expansion widens the TAM and helps surface winning verticals. He flags regulation and competition as the main risks, but sees logarithmic upside that makes any linear price target a trap -- and thinks the stock could eventually command a 10x price-to-sales.

00:00 - Sponsor: Superpower

01:38 - Why he never considered selling

03:41 - Buying the collapse into the teens

06:29 - Why Hims first caught his eye

10:37 - Healthcare is broken and overpriced

12:50 - Why Ignacio has added to his position since 2024

21:41 - Why price targets aren't right for Hims

27:42 - Retail cults

38:40 - Hims as Costco + Netflix

41:33 - Why Hims should own the wearable

44:25 - Regulation as a bear case

46:09 - Competition: Ro, Amazon, and others

55:30 - Why Hims could command a 10x P/S ratio