Vision Capital Fund, an investment management company, released its third-quarter 2025 investor letter. A copy of the letter can be downloaded here. The fund returned +15.6% net, YTD, compared to +14.8% for the S&P 500 for the same period. Since its inception on October 1, 2024, the fund has returned a cumulative of +27.8% net, compared to +17.6% for the S&P 500. Additionally, you can check the fund’s top 5 holdings to determine its best picks for 2025.
In its third-quarter 2025 investor letter, Vision Capital Fund highlighted stocks such as Lululemon Athletica Inc. (NASDAQ:LULU). Lululemon Athletica Inc. (NASDAQ:LULU) designs, distributes, and retails athletic apparel, footwear, and accessories. The one-month return of Lululemon Athletica Inc. (NASDAQ:LULU) was 7.79%, and its shares lost 53.91% of their value over the last 52 weeks. On December 08, 2025, Lululemon Athletica Inc. (NASDAQ:LULU) stock closed at $183.04 per share, with a market capitalization of $21.937 billion.
Vision Capital Fund stated the following regarding Lululemon Athletica Inc. (NASDAQ:LULU) in its third quarter 2025 investor letter:
Lululemon Athletica Inc. (NASDAQ:LULU) reported weak earnings in 1Q25 and 2Q25, with revenue growth of only +7% in 2Q25. While it continues to face headwinds in its core US market (~56% of revenues), with subdued growth of +0% YoY, it is still outperforming its larger competitors, such as Nike, by -7% and gaining market share. China remains strong, though experiencing some mild softness (reduced FY25 revenue growth guide from +30% to +25%). China (~16% of revenues) remains the largest growth driver for LULU, driven by continued faster store expansion and higher profitability relative to the Americas and ROW.
Lululemon Athletica Inc. (NASDAQ:LULU) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 42 hedge fund portfolios held Lululemon Athletica Inc. (NASDAQ:LULU) at the end of the third quarter, which was 45 in the previous quarter. While we acknowledge the potential of Lululemon Athletica Inc. (NASDAQ:LULU) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
