Is Adidas AG (ADDYY) Poised for Above-Market Growth?

Oakmark Funds, advised by Harris Associates, released its “Oakmark Global Fund” second quarter 2025 investor letter. The fund underperformed its benchmark, the MSCI World Index (net), in the second quarter. A copy of the letter can be downloaded here. The largest performance contributors were industrials and financials, at the sector level, while health care and energy detracted. In addition, you can check the top 5 holdings of the fund to know its best picks in 2025.

In its second quarter 2025 investor letter, Oakmark Global Fund highlighted stocks such as Adidas AG (OTC:ADDYY). Adidas AG (OTC:ADDYY) is an athletic and sports lifestyle products manufacturer and designer. The one-month return of Adidas AG (OTC:ADDYY) was 6.09%, and its shares lost 2.90% of their value over the last 52 weeks. On July 14, 2025, Adidas AG (OTC:ADDYY) stock closed at $120.79 per share with a market capitalization of $43.496 billion.

Oakmark Global Fund stated the following regarding Adidas AG (OTC:ADDYY) in its second quarter 2025 investor letter:

Adidas AG (OTC:ADDDF) is an iconic global sportswear brand specializing in athletic footwear, apparel and equipment. Adidas is the second-largest player behind Nike and current management (since 2023) has revitalized the company. We believe Adidas is poised for further margin expansion and above-market growth, supported by secular tailwinds, strong brand momentum and substantial investments into its product offerings and distribution channels. Despite reporting solid fundamental results, the stock price has declined amidst tariff concerns. This provided us the opportunity to initiate a position in a well-managed market leader at a discount to our estimate of intrinsic value.”

A well-dressed woman trying on a pair of shoes in a mono-branded franchise store.

Adidas AG (OTC:ADDYY) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 1 hedge fund portfolios held Adidas AG (OTC:ADDYY) at the end of the first quarter, which was 1 in the previous quarter. While we acknowledge the risk and potential of ADDYY 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 ADDYY and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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.