Here’s Why Oakmark Funds Remains Optimistic in adidas (ADDYY)

Oakmark Funds, an investment management firm, published its “Oakmark International Fund” first quarter 2022 investor letter – a copy of which can be downloaded here. The Oakmark International Fund returned -8.7% for the quarter ended March 31, 2022, compared to the benchmark, the MSCI World ex U.S. Index, which returned -4.8% for the same period. In addition, the Fund has returned an average of 8.8% per year since its inception in September 1992, outperforming the MSCI World ex U.S. Index, which has averaged 6.1% per year over the same period. Try to spend some time taking a look at the fund’s top 5 holdings to be informed about their best picks for 2022.

In its Q1 2022 investor letter, Oakmark International Fund mentioned adidas AG (NYSE:ADDYY) and explained its insights into the company. Founded in 1949, adidas AG (NYSE:ADDYY)  is a Herzogenaurach, Germany-based sportswear manufacturer with a $42.02 billion market capitalization. adidas AG (NYSE:ADDYY)  delivered a -28.19% return since the beginning of the year, while its 12-month returns are down by -35.50%. The stock closed at $103.30 per share on April 22, 2022.

Here is what Oakmark International Fund has to say about adidas AG adidas AG (NYSE:ADDYY) in its Q1 2022 investor letter:

“adidas (NYSE:ADDYY) (Germany) is a global sportswear company. The business is a leader in athletic footwear and apparel with a brand quality that helps to drive superior sales and margins across multiple segments and geographies. In our view, adidas’ shift to a vertical-based model in the past several years led to superior innovations and more consistent product development. Moreover, we believe the improved product, brand perception, sales and profitability have positioned the company well. We think sustained investments in brand, product and distribution should support above-market growth rates and improved margins moving forward. We also appreciate that CEO Kasper Rorsted executed structural changes decided before his arrival, which should lead to improved growth, margins and capital management.”

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Our calculations show that adidas AG (NYSE:ADDYY) fell short and didn’t make it on our list of the 30 Most Popular Stocks Among Hedge Funds. adidas AG (NYSE:ADDYY) delivered a -24.06% return in the past 3 months. In February 2022, we also shared another hedge fund’s views on adidas AG (NYSE:ADDYY) in another article. You can find other investor letters from hedge funds and prominent investors on our hedge fund investor letters 2022 Q1 page.

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