Do You Believe in the Growth Potential of On Holdings (ONON)?

ClearBridge Investments, an investment management company, released its “ClearBridge Growth Strategy” third-quarter 2025 investor letter. A copy of the letter can be downloaded here. US equities significantly rallied in the third quarter, with the S&P 500 returning 8.1%. The benchmark Russell Midcap Growth Index surged 2.8%. The investor optimism was driven by better-than-feared tariff outcomes, the passing of the One Big Beautiful Bill Act in July, anticipated interest rate cuts, and better corporate earnings. The strategy outperformed the benchmark in the quarter, driven by momentum in the AI-focused investments, while also having exposure to various other thematic bets. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its third-quarter 2025 investor letter, ClearBridge Growth Strategy highlighted stocks such as On Holding AG (NYSE:ONON). On Holding AG (NYSE:ONON) develops and distributes sports products. The one-month return of On Holding AG (NYSE:ONON) was 1.39%, and its shares lost 18.34% of their value over the last 52 weeks. On November 13, 2025, On Holding AG (NYSE:ONON) stock closed at $85.21 per share, with a market capitalization of $73.056 billion.

ClearBridge Growth Strategy stated the following regarding On Holding AG (NYSE:ONON) in its third quarter 2025 investor letter:

“Our largest addition was On Holding AG (NYSE:ONON), a disruptive Swiss designer of premium footwear and apparel that currently has ~2% share of the global athletic footwear market. We believe the company is well positioned to continue gaining market share through a combination of growing its brand awareness and wholesale presence. We also see room for it to increase its brick-and-mortar footprint and expand beyond running into new sports and apparel categories. While consumer spending cycles and competition remain risks, we are encouraged by the company’s premium positioned brand, which is currently resonating with consumers.”

Why On Holding AG (ONON) Surged Yesterday

On Holding AG (NYSE:ONON) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 42 hedge fund portfolios held On Holding AG (NYSE:ONON) at the end of the second quarter, compared to 53 in the previous quarter. While we acknowledge the risk and potential of On Holding AG (NYSE:ONON) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than On Holding AG (NYSE:ONON) and that has 10,000% upside potential, check out our report about this cheapest AI stock.

In another article, we covered On Holding AG (NYSE:ONON) and shared the list of stocks Jim Cramer discussed. In addition, please check out our hedge fund investor letters Q3 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.