Fairfax Increases Under Armour Stake by Over 560%
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 06 2026
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Source: Benzinga
- Stake Increase: Through Fairfax Financial Holdings, Prem Watsamakes has increased his stake in Under Armour by over 560%, making it nearly 10% of Fairfax's portfolio, indicating strong confidence in the company's long-term value.
- Investment Strategy: Known for his patient and deliberate investment style, Watsa's significant increase suggests he views Under Armour as materially undervalued, with diminishing downside risk, potentially signaling an upcoming turnaround for the company.
- Company Restructuring: Under Armour has focused on cutting excess inventory, exiting unprofitable channels, and refocusing on performance apparel, and while revenue growth has been unimpressive, improvements in cost discipline and balance sheet cleanup lay a foundation for future growth.
- Market Risks: Although Watsa's accumulation indicates a shift in market confidence, Under Armour still faces intense competition from larger rivals and margin pressures, requiring investors to carefully assess the potential for long-term recovery.
Analyst Views on UA
About UA
Under Armour, Inc. is an inventor, marketer and distributor of branded athletic performance apparel, footwear and accessories for men, women and youth. Its primary business operates in four geographic segments: North America, comprising the United States and Canada, Europe, the Middle East and Africa (EMEA), Asia-Pacific, and Latin America. Its apparel comes in three primary fit types: compression (tight fit), fitted (athletic fit) and loose (relaxed fit). Its footwear includes products for running, training, basketball, cleated sports, recovery and outdoor applications, as well as casual use. Its accessories primarily include athletic performance gloves, bags, headwear and socks. It sells its apparel, footwear and accessories in North America through wholesale and direct-to-consumer channels. It sells its apparel, footwear and accessories in EMEA primarily through wholesale customers and independent distributors, along with e-commerce Websites and brand and factory house stores.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
