RGA Investment Advisors, an investment management company, released its first quarter 2025 investor letter. A copy of the letter can be downloaded here. The letter discussed President Trump’s trade policy, focusing on enduring themes and principles, and two key structural constants shaping the investment landscape: Artificial Intelligence (AI) and Life Science. The firm views both as core pillars of the next decade. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2025.
In its first-quarter 2025 investor letter, RGA Investment Advisors highlighted stocks such as Lululemon Athletica Inc. (NASDAQ:LULU). Lululemon Athletica Inc. (NASDAQ:LULU) designs, distributes, and retails athletic apparel, footwear, and accessories. The one-month return of Lululemon athletica inc. (NASDAQ:LULU) was 15.94%, and its shares gained 5.33% of their value over the last 52 weeks. On June 2, 2025, Lululemon athletica inc. (NASDAQ:LULU) stock closed at $322.95 per share, with a market capitalization of $38.804 billion.
RGA Investment Advisors stated the following regarding Lululemon athletica inc. (NASDAQ:LULU) in its Q1 2025 investor letter:
“Late in the quarter, we purchased shares in Lululemon athletica inc. (NASDAQ:LULU), despite uncertainty about the tariff situation. Many of you are familiar with the brand. Lulu is a leading athleisure brand and though competition has increased from upstart offerings like Vuori, Alo and Fabletics, the company has continued to maintain relevance and perform admirably. These upstarts have varied approaches, but in aggregate, they have won share with a combination of faster, more tasteful fashion and cheaper prices. Importantly, this share has predominantly come from Nike–the 10,000 pound gorilla of the industry that continues to see negative topline growth. Even within the competitive landscape, it is notable that Vuori and Alo enthusiasts still consider Lulu core to their wardrobe, given the demonstrable quality advantage of the company’s proprietary fabrics. Although Lulu has benefited from dominance in fashion, its core calling has been performance and that segment of the market remains unquestioned.
For Lulu, U.S. Women’s in particular has slowed, though the company continues to drive growth in the men’s market, while expanding geographically to China and Europe. The slowdown in women’s seems tied both to broader weakness in apparel, particularly athleisure, and to rising competitive pressure – factors that have contributed to investor caution.. Meanwhile, China alone holds the potential to double the scale of Lulu’s business should the company attain a similar degree of resonance as Nike. We are not expecting this to be the case, though it is a notable source of potential upside…” (Click here to read the full text)
A store employee in an athletic apparel store restocking merchandise.
Lululemon athletica inc. (NASDAQ:LULU) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 48 hedge fund portfolios held Lululemon athletica inc. (NASDAQ:LULU) at the end of the first quarter, which was 60 in the previous quarter. While we acknowledge the potential of Lululemon athletica inc. (NASDAQ:LULU) 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 Lululemon athletica inc. (NASDAQ:LULU) and shared the list of stocks on Jim Cramer’s radar. In its Q1 2025 letter, Diamond Hill Large Cap Fund expressed concerns about brand saturation for Lululemon athletica inc. (NASDAQ:LULU) in the Americas but sees potential for increased U.S. sales and international expansion. In addition, please check out our hedge fund investor letters Q1 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.
