Here’s How Deckers Outdoor (DECK) Helped in Fidelity Growth Strategies Fund’s Performance

Fidelity Investments, an investment management company, recently released its “Fidelity Growth Strategies Fund” first quarter 2025 investor letter. A copy of the letter can be downloaded here. The Fidelity Growth Strategies Fund is a diversified domestic equity strategy with a focus on mid-cap growth investments. The fund focuses on investing in high-quality companies that demonstrate consistent growth and generate positive free cash flow. The fund’s Retail Class shares returned -8.03% in the first quarter, underperforming the -7.12% return of the benchmark Russell Midcap Growth Index. U.S. mid-cap growth stocks rose in January but then fell in February and March as post-election optimism was replaced by concern over executive actions, government disruptions, and rising uncertainty about trade and tariffs. In addition, you can check the fund’s top 5 holdings to know its best picks in 2025.

In its first-quarter 2025 investor letter, Fidelity Growth Strategies Fund highlighted stocks such as Deckers Outdoor Corporation (NYSE:DECK). Deckers Outdoor Corporation (NYSE:DECK) is a footwear, apparel, and accessories company for everyday casual lifestyle and high-performance activities. The one-month return of Deckers Outdoor Corporation (NYSE:DECK) was 0.43%, and its shares lost 31.86% of their value over the last 52 weeks. On July 2, 2025, Deckers Outdoor Corporation (NYSE:DECK) stock closed at $106.26 per share, with a market capitalization of $15.879 billion.

Fidelity Growth Strategies Fund stated the following regarding Deckers Outdoor Corporation (NYSE:DECK) in its Q1 2025 investor letter:

“Underweighting shares of footwear and apparel maker Deckers Outdoor Corporation (NYSE:DECK) also notably helped. The stock plunged in January after the firm’s fiscal-year revenue forecast fell short of Wall Street analysts’ expectations. Despite reporting higher sales in its two crucial brands, UGG® and HOKA®, analysts were concerned about the company’s expansion capabilities amid declining sales in its largest market, the U.S., and other challenges.”

Deckers Outdoor Corporation (NYSE:DECK) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 63 hedge fund portfolios held Deckers Outdoor Corporation (NYSE:DECK) at the end of the first quarter, which was 66 in the previous quarter. While we acknowledge the potential of Deckers Outdoor Corporation (NYSE:DECK) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the undervalued AI stock set for massive gains.

In another article, we covered Deckers Outdoor Corporation (NYSE:DECK) and shared the list of S&P 500 Stocks Jim Cramer recently discussed. In addition, please check out our hedge fund investor letters Q1 2025 page for more investor letters from hedge funds and other leading investors. While we acknowledge the potential of DECK 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.

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