By Mackenzie Tatananni
Under Armour has struggled to convince investors that its turnaround is working. Now, a firm founded by the so-called Warren Buffett of Canada is taking a bigger stake in the company.
Shares of the sneaker and apparel maker got a boost after Toronto-based Fairfax Financial Holdings disclosed a roughly 22% stake in the company in a filing with the Securities and Exchange Commission on Monday.
As of Dec. 30, Fairfax owned 42 million Class A shares, according to the Schedule 13D filing. Under Armour had roughly 189 million shares outstanding as of Jan. 6.
The 22% stake compares with a previously disclosed stake of around 16%, as denoted in an amended Schedule 13G filing late last month. The company has been buying Under Armour shares over the course of several months, past SEC filings show.
The SEC requires investors to file a Schedule 13D once they acquire beneficial ownership of more than 5% of a company's stock. Depending on the circumstances, an investor may be able to file a more abbreviated Schedule 13G, which is for so-called passive investors who don't intend to influence or control the company.
Fairfax is headed by Chairman and CEO Prem Watsa, who has held both roles since founding the company in 1985 and remains a majority stakeholder. In 2006, Canadian newspaper The Globe and Mail dubbed him "the Warren Buffett of Canada."
A representative for Fairfax couldn't be reached for comment on the stake.
The billionaire, like Buffett, focuses on value investing. Berkshire Hathaway, where Buffett served as CEO until December, has been characterized as Fairfax's bigger, more established rival.
Shares of Under Armour have slumped 34% over the past year versus a nearly 18% gain for the S&P 500. The company is in the throes of a multi-year turnaround effort that is expected to be largely complete by the end of fiscal 2026. Under Armour swung to a loss in its latest fiscal quarter and said it expected to incur an additional $95 million in restructuring charges.
The company's breakup with basketball star Stephen Curry thrust it into the spotlight late last year. The parties confirmed in November that they had mutually parted ways, ending an agreement that spanned over a decade. Under Armour indicated the split was part of an effort to focus on its core product categories.
Inside Scoop is a regular Barron's feature covering stock transactions by corporate executives and board members -- so-called insiders -- as well as large shareholders, politicians, and other prominent figures. Due to their insider status, these investors are required to disclose stock trades with the Securities and Exchange Commission or other regulatory groups.
Write to Mackenzie Tatananni at mackenzie.tatananni@barrons.com
To subscribe to Barron's, visit http://www.barrons.com/subscribe
(END) Dow Jones Newswires
January 09, 2026 21:30 ET (02:30 GMT)
Copyright (c) 2026 Dow Jones & Company, Inc.
Comments