Here’s Legacy Ridge Capital Partners’ Investment Thesis for Polaris (PII)

Legacy Ridge Capital Management released its 2025 mid-year letter recently. A copy of the same can be downloaded here. The partnership returned -1.7% gross and net of performance fees through June 2025. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2025.

In its second-quarter 2025 investor letter, Legacy Ridge Capital Management highlighted stocks such as Polaris Inc. (NYSE:PII). Polaris Inc. (NYSE: PII) is a manufacturer of powersports vehicles, operating through three segments: Off-Road, On-Road, and Marine. The one-month return of Polaris Inc. (NYSE:PII) was 17.86%, and its shares lost 31.01% of their value over the last 52 weeks. On August 12, 2025, Polaris Inc. (NYSE:PII) stock closed at $55.29 per share, with a market capitalization of $3.109 billion.

Legacy Ridge Capital Management stated the following regarding Polaris Inc. (NYSE:PII) in its second quarter 2025 investor letter:

“One of the new investments we made this year is in Polaris Inc. (NYSE:PII), a manufacturer of powersports vehicles, including: Side-by-sides, ATVs, snowmobiles (Off-Road Segment), motorcycles (On-Road Segment), and boats (Marine Segment). Side-by-sides—Rangers and Razors—look like mini-trucks and dune buggy type vehicles, respectively.

For guys who invest in energy primarily and airlines secondarily, it may seem odd we’ve now invested in a consumer discretionary stock. The truth is we’re closet generalist investors at heart and just love the expansive treasure hunt and ensuing poker game, which opportunities like this help satiate. But we’re industry-focused practitioners, so any investment touching the outside edge of our circle of competence—which Polaris is—will be small, i.e., much less than a 10% position at our purchase price…” (Click here to read the full text)

Is Polaris Inc. (PII) the Best Dividend Growth Stock with High Yields?

A motorcyclist enjoying the open road on a sunny day.

Polaris Inc. (NYSE:PII) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 31 hedge fund portfolios held Polaris Inc. (NYSE:PII) at the end of the first quarter, which was 26 in the previous quarter. In Q2 2025, Polaris Inc.’s (NYSE:PII) sales declined 6%, due to the ongoing powersports industry downturn and increased promotions. While we acknowledge the risk and potential of Polaris Inc. (NYSE:PII) 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 Polaris Inc. (NYSE:PII) and that has 10,000% upside potential, check out our report about this cheapest AI stock.

In another article, we covered Polaris Inc. (NYSE:PII) and shared Artisan Mid Cap Value Fund’s views on the company in the previous quarter. In addition, please check out our hedge fund investor letters Q2 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.