Diamond Hill Capital released its second-quarter 2025 investor letter, noting a market rebound following the President’s tariffs announcement. US stocks rose approximately 11% as measured by the Russell 3000 Index. Large-cap stocks saw the highest increase, while the portfolio returned 7.31% (net) vs 10.99% for the index.

In its investor letter, Diamond Hill Capital highlighted Lululemon Athletica Inc. (NASDAQ: LULU). The one-month return of LULU was -10.54%, with shares losing 32.78% over the last 52 weeks. On September 29, 2025, LULU closed at $179.11 per share, with a market cap of $20.907 billion.

Diamond Hill Capital noted in its Q2 2025 letter that LULU faced challenges with softer sales domestically and internationally. Despite this, they believe the brand remains relevant and shares are trading at an attractive discount to intrinsic value.

Lululemon Athletica Inc. (NASDAQ: LULU) was not among the 30 Most Popular Stocks Among Hedge Funds in Q2. 55 hedge fund portfolios held LULU, up from 48 in the previous quarter. While acknowledging LULU’s potential as an investment, certain AI stocks may offer greater upside potential with less downside risk.

Read more at Yahoo Finance: Lululemon Athletica (LULU) Slid Amid Sales Slowdowns