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Billionaire Ron Baron Refuses to Sell This Beaten-Down Stock

March 15, 2025

Legendary investor Ron Baron, founder of Baron Funds, has made a bold move by refusing to sell his stake in a beaten-down stock. Despite the stock's significant decline, Baron remains committed to his long-term investment thesis and is willing to ride out the volatility.

According to a recent filing with the Securities and Exchange Commission (SEC), Baron Funds still holds a significant position in shares of Under Armour (UA), a sportswear company that has struggled in recent years. Under Armour's stock price has plummeted by over 70% in the past five years, making it one of the worst-performing stocks in the S&P 500.

Baron's decision to hold onto his Under Armour stake is a testament to his conviction in the company's long-term potential. In a statement, Baron explained that he believes Under Armour is undergoing a necessary transformation to regain its footing in the competitive sportswear market.

"We're not interested in making a quick buck," Baron said. "We're in it for the long haul, and we're willing to ride out the ups and downs to realize our vision for Under Armour's future."

Baron's investment approach has been successful in the past, with his flagship Baron Growth Fund returning an impressive 14.5% annualized over the past 10 years. His willingness to take a contrarian view and hold onto underperforming stocks has been a key factor in his fund's success.

Under Armour's recent struggles have been attributed to a range of factors, including increased competition from rivals like Nike and Adidas, as well as challenges in its wholesale business. However, the company has been working to revamp its product line and marketing strategy, and some analysts believe it may be poised for a turnaround.

Baron's decision to hold onto his Under Armour stake is a reminder that even the best investors can be wrong in the short term. However, his long-term focus and willingness to take a contrarian view have been key to his success, and it will be interesting to see if his bet on Under Armour pays off in the long run.