Pershing Square Holdings, an investment holding company, released its first half 2025 investor letter. A copy of the same can be downloaded here. In the first half of 2025, the company’s NAV per share increased by 15.5% and 17.7% year-to-date through August 19, 2025. The company’s share price rose by 9.9% and 16.5% during these periods, while the S&P 500 increased by 6.2% and 9.9%, respectively. The first half of 2025 was characterized by complex macroeconomic and geopolitical dynamics, contributing to broad uncertainty. In addition, please check the fund’s top five holdings to know its best picks in 2025.
In its second-quarter 2025 investor letter, Pershing Square Holdings highlighted stocks such as NIKE, Inc. (NYSE:NKE). NIKE, Inc. (NYSE:NKE) designs, develops, and markets athletic footwear, apparel, equipment, and accessories. The one-month return of NIKE, Inc. (NYSE:NKE) was -0.15%, and its shares lost 7.02% of their value over the last 52 weeks. On September 05, 2025, NIKE, Inc. (NYSE:NKE) stock closed at $73.91 per share, with a market capitalization of $109.16 billion.
Pershing Square Holdings stated the following regarding NIKE, Inc. (NYSE:NKE) in its second quarter 2025 investor letter:
“NIKE, Inc. (NYSE:NKE) is in the early stages of a turnaround under new CEO Elliott Hill. In the ten months since rejoining the company, Hill has moved with urgency, replacing 12 out of his 15 direct reports and resetting the culture and organizational structure with a renewed focus on sport. Hill’s “Win Now” strategy targets a return to profitable growth by accelerating product innovation, creating distinctive marketing, and rebuilding wholesale distribution, while right-sizing inventory levels across certain product lines and sales channels following several years of overreliance on direct-to-consumer and lifestyle footwear. While a full turnaround will take time, we are beginning to see encouraging signs of progress.
In the most recent quarter, NIKE delivered results and guidance ahead of expectations. Revenue declined by 11% on a currency-neutral basis as aggressive inventory liquidation and elevated wholesale discounts weighed on results. However, momentum is building in sports performance, with running revenue growing by high-single-digits powered by new franchises such as the Vomero 18. Other near-term priorities include training with the Metcon shoe and 24/7 apparel collection, soccer with the upcoming 2026 World Cup in North America, and basketball with a Caitlin Clark signature shoe expected to be launched in spring 2026. Wholesale partners are excited about the newness, with holiday 2025 order books up year-over-year, supporting better-than-expected guidance for the current quarter of a mid-single-digit revenue decline. Management believes clearing excess inventory by the end of 2025 will allow NIKE’s order book and revenue growth to better align, enabling a return to growth in 2026.…”(Click here to read the full text)
NIKE, Inc. (NYSE:NKE) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 81 hedge fund portfolios held NIKE, Inc. (NYSE:NKE) at the end of the second quarter, which was 81 in the previous quarter. While we acknowledge the risk and potential NIKE, Inc. (NYSE:NKE) 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 NIKE, Inc. (NYSE:NKE) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered NIKE, Inc. (NYSE:NKE) and shared the list of best consumer cyclical stocks to buy according to hedge funds. 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.
