Fairfax Financial Holdings, the Toronto-based investment and insurance company, has accumulated a stake of approximately 22 percent in Under Armour, according to a regulatory filing submitted Jan. 5.
The 13D filing revealed that Fairfax Financial owned approximately 42 million shares of the Baltimore-based sportswear company as of Dec. 30, 2025. This represents an increase of almost 36 million shares from Fairfax’s previously disclosed position, marking a significant expansion of the firm’s investment in the athletic apparel maker.
Stock surges on institutional confidence
Under Armour’s stock jumped as much as 7.2 percent in late trading Monday following the disclosure, Bloomberg reported, offering a rare bright spot for the company after a difficult year. The rally extended gains from earlier in the day, when shares had already climbed on anticipation of positive news from institutional investors.
The brand’s shares slumped roughly 40 percent in 2025 amid declining revenue and high-profile setbacks. The Fairfax stake marks a vote of confidence from a sophisticated institutional investor known for long-term value plays.
Investment strategy signals confidence amid challenges
The filing states that the shares were acquired by Fairfax Financial as an investment and that the firm has no formal plans for mergers, takeovers or other control-seeking actions beyond the influence that comes with such a large stake and voting power.
Fairfax Financial has been led since the mid-1980s by founder Prem Watsa, who is often compared to Warren Buffett for his long-term, contrarian investment style. The substantial stake in Under Armour aligns with Watsa’s reputation for identifying undervalued companies with turnaround potential.
Critical juncture for Under Armour
The investment comes at a pivotal moment for Under Armour, which is working to stabilize its business after losing NBA star Stephen Curry, its most high-profile endorser. The company has faced mounting pressure to reverse its revenue decline and rebuild its competitive position in the crowded athletic apparel market dominated by Nike and Adidas. Fairfax’s backing provides Under Armour with a committed long-term investor at a time when the company needs stability. The 22 percent stake might give Fairfax significant influence over corporate decisions, though the firm has stated it does not intend to pursue control of the company.
Under Armour and Fairfax representatives did not immediately respond to requests for comment, according to Bloomberg.
What this means for Under Armour’s future
The substantial institutional investment from Fairfax could signal a turning point for Under Armour’s efforts to regain investor confidence. With a major long-term shareholder now holding significant voting power, the company may find it easier to pursue strategic initiatives that require patience from the market. However, the investment also raises questions about what operational or strategic changes Fairfax might advocate for.
About Fairfax Financial Holdings
Fairfax Financial Holdings is a Canadian holding company that operates primarily in property and casualty insurance and reinsurance, with additional investments across various sectors. Founded and led by Prem Watsa since 1985, Fairfax is known for its value-oriented investment approach and willingness to take significant positions in companies it believes are undervalued. The firm manages over $70 billion in assets and has a history of successful turnaround investments.
